Exchequer figures for the month of October show the Government raised €4.3bn less than expected from taxes since January.
This was a shortfall of 12% compared with the original target for 2008.
However, the outcome was broadly in line with the Government prediction at the time of the Budget last month that the tax shortfall for the full year could be as high as €6.5bn.
Reduced spending by Irish consumers was one of the biggest driving forces behind the widening tax shortfall.
The figures show that the amount collected in VAT and Excise Duties was €2bn below the amount targeted for the first ten months of the year.
The slowdown in the property market is also continuing to severely damage the public finances.
The figures show that the amount collected through Stamp Duty and Capital gains tax was running €1.5bn behind target, reflected in the downturn in prices and activity in the housing market.
Tax boost from Budget measures
The corporate sector is also paying less taxes because they are making lower profits as a result of the slump. Reflecting this, the amount collected through corporation tax was €560m behind target by the end of October.
On a slightly more positive note for the Government, the extra taxes announced on cigarettes and petrol during the Budget last month boosted the tax take a little during October. The result of this was that the taxation shortfall was slightly less than it might otherwise have been.
Nevertheless, it is far too soon to know whether the Government's view on the taxation shortfall in 2008 is likely to prove to be accurate.
As much as 20% of all taxes come in during November and economists would have to with until the November figures are published to see if the Government's view of the economy in the closing months of 2008 was too optimistic.
On the spending side today's figures show that Government spending was running as much as €616m behind target at the end of November.
Today's figures also show that Government had to borrow €11bn to balance the public finances during the first 10 months of the year.
