The public finances stabilised last month, but the amount of income tax collected by the Government remained weak, the latest Exchequer returns data shows.
The Exchequer deficit at the end of May was €7.8 billion, compared to €10.5 billion at the end of May 2009, according to figures published this afternoon by the Department of Finance.
The department said the deficit was "generally in line with expectations" and meant the targets it set in last December's budget remained valid.
The year-on-year reduction in the deficit is largely due to the frontloading of this year's payment to the National Pensions Reserve Fund (NPRF). A sum of €3 billion had been paid into the NPRF by the end of May 2009, but no such payment was due this year.
Tax receipts continue to fall year-on-year. The Government has collected €12.1 billion in tax in the first five months of the year, down €1.4 billion or 10.4 per cent on the same period last year. The year-on-year decline has narrowed slightly since April.
Income taxes lagged almost 5 per cent - or a sum of €219 million - behind targets set by the Government earlier this year, indicating the ongoing fragility in the economy.
However, this was slightly offset by a small surplus in VAT and corporation tax receipts. Overall, tax receipts are 1.2 per cent behind target.
The Government is aiming to collect around €31 billion in tax during 2010 as a whole - a 6 per cent decline on 2009's tax haul.
Total net voted expenditure by Government departments at the end of May was €17.8 billion, a sum of €1.7 billion or 8.9 per cent below spending recorded in the same period in 2009.
Current expenditure - or day-to-day spending by the State - is broadly in line with expectations, coming in just €26 million or 0.2 per cent above target. Current spending of €16.2 billion is down 5 per cent or €851 million on the same period in 2009.
Capital expenditure - or spending on infrastructure projects - is almost 20 per cent or €390 million below target and more than 35 per cent or €891 million below last year's figure. The Department of Finance said capital spending was coming in below target due to "timing issues".
