Exchequer returns for the six months of the year are €600 million better than expected due mainly to a surge in tax revenue.
The figures, published today, show Exchequer revenue amounted to €17,520 million, significantly ahead of the €16,919 million anticipated in the Government’s estimates.
Tax Revenue was €17,239, million - €320 million better than expected, due to strong VAT and Excise returns which accounted for €174 million and €118 million respectively.
Overall there was an Exchequer deficit of €594 million compared to an Exchequer surplus of €130 million for the first half of 2004 and a budgeted deficit of €2,988 million for 2005 as a whole.
The Current Account Balance at end June showed a surplus of €1,186 million compared to a surplus of €1,737 million for the same period last year and a budgeted surplus of €4,092 million for 2005 as a whole.
The Minister for Finance Brian Cowen said: "The results to the end of the second quarter indicate that the public finances remain on course."
Mr Cowen said: "Tax revenues are 2 per cent - €320 million - ahead of profile so far. Apart from costs arising in relation to the refund of nursing home charges, public expenditure in 2005 is expected to be in line with estimates."
"Sound public finances are the basis for sustainable growth. I intend to stick to that prescription," Mr Cowen added.
But Labour finance spokeswoman Joan Burton said the figures reveal a combined under-spend of over €400 million on the capital side.
Ms Burton said: "It appears that neither this Government or its Ministers are capable of driving infrastructural projects at the rate which the economy requires."
She said: "Capital projects are costing 20 to 30 per cent more than similar projects in European countries and still the projects are not coming in on time, or indeed anywhere near budget.