Latest figures from the Department of Finance show that there was an Exchequer surplus of €33m for 2004.
This compares with the December 2003 Budget Day prediction of a deficit of over €2bn for the year.
Total tax receipts amounted to €35.581bn for the year, up 10.8% compared to the target of 4% in the December 2003 Budget.
Total spending at €32.548bn increased by 5.9%, slightly less than the target of 7% for the year.
The Department's figures show tax revenue was 6.5% ahead of target at €35.581bn.
The Department said this was due to better than anticipated receipts from nearly all tax heads, especially Capital Gains Tax and stamp duties and extra once off money from Revenue's special investigations.
Commenting on the figures, the Minister for Finance, Brian Cowen, said he was pleased that the economy performed better than had been expected, especially in the housing and construction sectors.
