Exchequer returns posted today by the Minister for Finance show that receipts are nearly €2 billion less than figures set out in last year's budget.
Ahead of tomorrow's budget Mr Cowen said that the tax take for the first nine months of the year are running at just under €44.7 billion, compared to the projected €46.5 billion.
The difference is widely being blamed on the slowdown in the new-housing property market with stamp duty running at €3 billion, over €600 million below target.
Richard Bruton, Fine Gael
The overall exchequer surplus is at €1.6 billion.
Revenue from VAT increased 7.6 per cent to €14 billion while corporation tax is at €6.2 million.
Fine Gael and the Labour Party expressed concerns about the state of the economy after today's figures were published.
Fine Gael finance spokesman Richard Bruton said the figures showed the housing market slowdown had spilled over into the wider economy.
Mr Bruton said the Government "must hand back its pay rise" if it wants to have any credibility when addressing the economic challenges that lie ahead.
"In the month of November alone, tax revenue came up €1,200 million short of predictions by the Department of Finance. Significantly, of this shortfall, only €160 million was explained by Stamp Duties. The biggest single contributor was a slump in Corporation Tax of almost €400 million." he said.
"The alarming message from these figures is that even in the face of a modest slowdown in the economy, the public finances have plunged alarmingly. In the space of 12 months, the Minister has turned a surplus of €4,000 million into a deficit of €2,200 million and counting."
Labour finance spokeswoman Joan Burton said that in recent years November has been one of the best months of the year for the Minister for Finance as it is the month when receipts from the self-employed are reflected in the tax take.
"The Minister presents his budget tomorrow with an opening deficit of €3.8 billion, significantly higher than the Department of Finance itself was predicting less than a month ago in the pre-budget outlook published in October," she said.
"Tomorrow's budget is going to test Minister Cowen's priorities for the economy. Clearly there would appear to be no room for the kind of top rate income tax cuts he promised before the election.
"Tomorrow the Minister will present both the usual budget of tax and social welfare changes but also the detailed departmental estimates. Fianna Fáil made generous election promises in relation to health, education and justice with more teachers, more guards and more consultants promised. Tomorrow will tell whether the Minister intends to fulfil those promises."
