There was an Exchequer deficit of just over €1.6bn last year, three times the figure the Government had projected.
The fall in the economy's tax take compares to a surplus of more than €2.26bn in 2006, when the property market was booming.
Stamp duty receipts for last year were more than €700m below what had been forecast a year ago. VAT receipts were almost €400m below expectation.
Meanwhile income tax taken, while slightly less than forecast is still almost 10% up on 2006 levels at almost €13.6bn.
The Department of Finance said the figures were broadly in line with expectations published by Government on budget day.
Earlier Davy Stockbrokers predicted that economic growth would slow to 2.1% this year.
The forecast is one of the most pessimistic outlooks for Ireland but Davy says the economy remains strong.
It has predicted that growth will bounce back in 2009.
Davy Stockbrokers says the economy is slowing not stopping.
Despite house building falling by 40% this year it says other sectors are doing well.
It says agriculture will have a good year as food prices rise globally.
And it says exports will also be healthy.
But growth in employment will only be 1% and the numbers out of work will grow.
It says cuts in interest rates are unlikely.
However once the economy gets through the housing downturn it will return to normal growth rates in 2009.
