Exchequer returns for 2008 have confirmed that there was a tax shortfall of more than €8bn last year.
This meant there was an Exchequer deficit of €12.7bn for the year.
The Minister for Finance said today that the figures reflect the fact that, both domestically and internationally, economic conditions are poor.
Brian Lenihan said that the further deterioration in tax receipts since Budget day reflected the worsening economic circumstances over the last number of months.
He said contraction in economic activity in 2009 of somewhere in the region of% is now likely.
When the Government meets later this week it will consider the revised economic and fiscal assessment from the Department of Finance.
Mr Lenihan plans to publish these revised forecasts shortly thereafter.
Borrowing for day-to-day expenditure is not sustainable, he said. 'Our first priority is to stabilise the public finances and to restore sustainability to them.'
See the Exchequer Statement for December 2008 here
In an RTÉ interview yesterday, Taoiseach Brian Cowen said the Government would have to discuss the shortfall and its implications with the social partners.
