The Exchequer returns for the first nine months of the year show a deficit of €418 million.
Over the same period last year, the deficit was just over one billion euro.
The figures also show that tax receipts are just over 7% above target for this stage of the year, with VAT, stamp duty and income tax all running ahead of target.
Capital spending, meanwhile, is running some €742 million below target.
The Department of Finance says this is largely due to slower than expected spending across a number of Government departments.
