The Exchequer deficit rose to €2.16 billion in the first 10 months of the year, it was revealed today.
Tax revenue at the end of last month amounted to €2.23 billion - up by 4.7 per cent on a year ago but still well short of the 8 per cent growth forecast by the Minister for Finance Mr McCreevy in his budget last December.
Government spending increased to €28.1 billion in the period, from €26.2 billion at the same time last year.
Accounting for almost one third of the total tax take, VAT was up 8.5 per cent to €7.9 billion.
Labour's finance spokeswoman Ms Joan Burton claimed Mr McCreevy was undermining Irish competitiveness through his failure to invest in the Irish economy.
She added: "Cruel cuts are being made in current spending. This is the result of harsh reductions in necessary spending programmes, which are damaging our social fabric and the quality of essential services.
"This is all being done in the name of balancing the books, despite advice that it is perfectly appropriate to borrow to finance necessary investment.
"It is clear that the Irish economy is still being managed for cynical political motives," she said.
PA