Tax revenue is likely to be €500 million less than projected for the year, the Minister for Finance, Mr MrCreevy, said at the announcement of half-year Exchequer returns today.
Revealing a deficit of €344 million on projections for the first half of the year, Mr McCreevy said today's figures show Government departments are keeping a cap on spending but also re-enforced "the need to continue to manage spending effectively and within budget".
The Current Account balance is in surplus to the tune of nearly €1.25 billion - almost half what it was in the first half of 2002. On the capital side the deficit is nearly €1.6 billion - almost half a billion down on the same period last year.
Cumulative expenditure rose to €14 billion from €13.2 billion for the first six months of last year, nearly €1 billion less than allowed for in last year's budget. But total tax revenues and other receipts stand at €16 billion, compared to €15.3 billion for the same period last year, nearly half a billion less than predicted.
While tax revenues for the first half of the year are 9.2 per cent higher year-on-year, the figure represents 46 per cent of the budget-day annual target.
The figures mean the €1.87 billion exchequer deficit projected for this year is likely to be exceeded.
But Mr McCreevy said: "The projection is that end year expenditure will be broadly on target."