The latest figures from the Department of Finance reveal that there was an Exchequer surplus of over €1.8 billion for the five months to the end of May, up from a deficit of €143m the same time last year.
Total tax receipts amounted to €16.968 billion, over €870m more than the target set out by the Government in the Budget.
Total spending by the various Government departments is about €490m behind targets, at €13.875 billion.
Income tax receipts are still running are still running just slightly below targets, at just under €4.4 billion.
The other main tax categories are well ahead, with customs up to €107 million, excise duties up to €2.327 billion, capital gains tax up to €834m and capital acquisitions tax up to €130 million.
Stamp duties at €1.294 billion continue to show the strong state of the Irish construction industry, while VAT receipts at €6.252 billion were ahead of targets of €6.165 billion.
The Minister for Finance, Brian Cowen, welcomed the figures.
Mr Cowen said figures show that strong public finances are even more sustainable than previously thought.
However, he said that the fact that house prices have re-acelerated does concern him.
