The 2011 report from the Comptroller and Auditor General shows the State had total income of €38.7 billion last year.
It spent €64.2bn, leading to a deficit of €25bn.
The C&AG report shows that State income last year was up by nearly €3bn on 2010 but down 21% on 2007.
The report shows General Government Debt - the measure of all State liabilities - on the 31 December last year was €169bn.
Revenue collected more than €42bn net in taxes, duties and also receipts on behalf of other departments last year.
It had to repay more than €6bn in taxes, duties and receipts on behalf of other departments for 2011.
New teachers overpaid by €1.18m
The Department of Education took nine months to implement budget cuts to the salaries of new teachers and overpaid new entrants to the profession by a total of €1.18m as a result, according to the C&AG report.
It criticised the Department of Education for the delay and also for the fact that, one year on, the money has not yet been recouped.
According to the report, approximately 3,000 teachers across Primary and Second-Level were overpaid by about €350 each.
1,700 non-teaching staff were also overpaid. This figure does not include VEC schools.
Revenue should present annual accounts to Dáil
The report recommended that the Revenue Commissioners should present their accounts to the Dáil every year, together with the certificate of the C&AG. At present, Revenue is not legally required to do so.
In his 2011 report, the C&AG said that proper books of account have been kept by Revenue and the financial statements are in agreement with them.
Between 2007 and 2010 the total amounts collected by Revenue decreased every year.
However in 2011 the total collected increased by €1bn, an increase of 2.6% over 2010.
This is in the main was due to the introduction of the Universal Social Charge and levy on pension schemes offset by decreases in receipts Corporation Tax and VAT.
GDP has fallen each year until 2011 and the proportion of GDP collected as tax also fell from 30% in 2007 to 26% in 2010.
In 2011 just under 27% of GDP was collected as tax and other charges.
Over the last four years to March 2012 the estimated value of tax outstanding increased by 54%.
The total tax outstanding at the end of March 2012 was just under €2bn.
Agreement to pay was in place in respect of only 6% of the outstanding debt at the end of March 2012.
About 20% was subject to enforcement action, mostly in relation to VAT and Income tax debts.
Pensions 'a significant liability of the State'
Accrued pension entitlements of public servants, which the report says are "a significant liability of the State", come to €116bn.
The figure is an estimate of the present value of cash payments that must be met over the next 60 years for pensions earned by the end of 2009.
The National Pension Reserve Fund was valued at €14.4bn on 31 December 2012, a decrease of €9.3bn on 2010.
The decrease is due to the Minister of Finance taking €1bn from the fund and €10bn going for investment in AIB and Bank of Ireland under the EU/IMF programme.
The fund now has nearly €21bn invested in the two banks but the value of that has fallen to €8bn, representing a loss of nearly 40%.
€65bn invested in banks by end of 2011
The report says by the middle of 2012 the State had a total investment of €65bn in AIB, Permanent TSB, IBRC and Bank of Ireland as a result of which the State owns all or most of the first three institutions and 15% of Bank of Ireland.
It also says the State has so far had a €4.3bn return on the banking investments comprised of €900m from the banks, €3.4bn in fees for the liability guarantee scheme and €1.1bn in dividends, which was payable in ordinary shares.
Welfare overpayments increased steadily since 2007
The value of welfare overpayments has increased steadily since 2007, according to the report. Recovery of debt also increased, but the value of new overpayments exceeds the amount recovered on an annual basis.
The total overpayment debt due for recovery increased from €232m at the end of 2007 to €343m at the end of 2011.
Last year overpayment debts recorded amounted to €92.4m. 72% of the value of overpayment debts recorded last year were in relation to social assistance payments.
In total overpayments were recorded in relation to over 63,000 claimants in 2011.
Overpayments totalling €35m were attributed to fraud or suspected fraud in 2011. The report says they accounted for approximately 36% of all overpayments between 2007 and 2011.
The 15 largest cases of overpayment referred to the unit for overpayment and debt management totalled €800,000.
By the end of 2011 €1,400 had been recovered in respect of the 15 cases, representing less than 0.2% of the total value of the overpayments recorded.
NTMA a 'complex organisation'
The report has described the National Treasury Management Agency as a "complex organisation" with multiple functions that extend beyond its original mandate of managing Ireland's national debt.
It says that the total administrative costs of the National Asset Management Agency in 2011 were €128.4m in 2011, however the agency made a profit overall.
According to the report, that figure was €46.2m in 2010.
The report says the NTMA assigned staff and provided services to NAMA last year for which a cost of almost €27.7m was incurred and recharged to NAMA.
Just under €24m was incurred in respect of staff costs, including €20.9m for 200 staff employed by the NTMA and assigned to NAMA.
Many procurements still not using competitive processes
The C&AG said there continues to be substantial levels of procurement by Government Departments and Offices without using competitive processes.
He said the extent of non-competitive procurement may also be understated due to inadequate systems for capturing contract details.
Recording such contracts on an exception basis is not effective, he said.
He said explanations provided by departments and offices for not using competitive procurement processes are not precise and do not fall into mutually-exclusive categories.
He recommended that each department create a central record of all contracts, including whether a competitive process was used.
The Department of Public Expenditure & Reform has agreed to this.
A total of 41 procurement contracts were awarded without competitive tender due to the expertise of the individuals or firms involved.
There were 121 contracts totalling €28m where it was felt there was only one suitable supplier.
These included a Department of Defence contract worth €8.2m over five years for aircraft parts and maintenance.
There was a further contract worth €1.3m to provide spare parts for a remote weapons system.
A further 96 contracts were awarded without competitive tenders for other reasons.
The Irish Prison Service awarded 50 of these, totalling €3.4m. They included contracts with five separate dental practitioners totalling €335,000.
The Garda Síochána awarded 16 contracts for medical services totalling €3m. The individual contracts ranged in value from €26,000 to €1.4m.
Many contracts awarded for State visits
An Garda Síochána awarded 22 contracts worth a total of €2.3m for accommodation, catering equipment and traffic management related to State visits in May 2011 by US President Barack Obama and Britain’s Queen Elizabeth.
The Office of Public Works entered four contracts totalling €900,000 for building works on the Press Centre at Dublin Castle - also for the State visits.
The Department of the Taoiseach hired an unnamed company for €559,000 to provide "event direction and services".
There were 77 instances of non-competitive tendering to purchase proprietary goods - mainly involving information and communications technology.
Reasons given for non-competitive tendering included urgency and security considerations.
€50.4bn spent on public services
The report also shows that the State spent €50.4bn on public services in 2011, made up of €46.4bn in supply grants, €13.5bn in capital funding carried over from 2010, and appropriations-in-aid of €4bn.
The total amount spent by departments and offices was €49.7bn. After deduction of realised appropriations-in-aid totally €4.1bn, the net expenditure for the year was €45.6bn.
That figure is down from €46.57bn in 2010, and €49.3bn in 2008.
The report states that all departments and offices managed within their vote allocations and surpluses in 2011 came to €815m.
€114m was approved for carryover to 2012, while €701m was due to be surrendered back to the Exchequer.
Extra receipts totalling €124m arose from areas including garda on-the-spot fines and court fines, proceeds of significant property sales, surpluses in State companies, compensation payments and voluntary surrender of salary.
NRA paid additional €16m for N6 PPP
A review of major Public-Private Partnership contracts undertaken by the State shows the National Roads Authority agreed to pay an additional €16m to a company working on the N6 Ballinasloe PPP following a dispute over completion of work on the motorway.
A mediator was appointed last July and in August a settlement was reached whereby the company undertook to complete the works and the NRA agreed to pay the extra money.
The company in question will eventually get €376.5m in payments from the State, up 4.4% from the originally agreed sum.
Meanwhile, as projected traffic volumes written into PPP contracts by the NRA for the Clonee/Kells M3 PPP and the Limerick Tunnel PPP were not reached in 2010, the NRA had to pay €5.2m to the contracting companies in 2011.
The NRA expects to pay another €6.7m to the companies in 2012 as a result of continued lower than expected traffic volumes.
The C&AG report also states that the original contracts provided for annual traffic volume increases on each project, which are not now expected to be met.
This means the State will keep paying annual "traffic guarantee payments" to the Clonee/Kells contractor until 2025 and until 2041 in the case of the Limerick tunnel contractor.
Ireland a net beneficiary of EU funding
Ireland is a net beneficiary of EU funding and in 2011 received €1.9bn, while only contributing €1.35bn, according to the report.
Of the fund received, 82% is spent on agriculture and rural schemes with the bulk of this money going on direct payments to farmers.
29% drop in overseas aid spending since 2008
Ireland has cut the amount of money it gives to the developing world by almost a third since the start of the economic crisis.
The C&AG report says total spending on Official Development Aid last year was €657m, down from €921m in 2008, the peak year for spending on ODA. The €264m is a drop of 29%.
Last year, Ireland spent 0.52% of GDP on development aid, compared to a pre-crisis peak of 0.59%.
The official target is to raise ODA spending to 0.7% of GDP. Even at current rates, Ireland is the eighth biggest spending on development aid as a percentage of the economy in the OECD.
Motor tax evasion should be better monitored
The report recommends that the Departments of the Environment and Transport should ensure they have reliable and cost-effective systems in place to estimate and monitor the level of motor tax evasion.
According to the report, reviews of traffic by the Department of Transport on the M50 on four separate days in 2010 and 2011 suggest 5% of vehicles on the road are not up-to-date with their tax.
It says the rate of evasion is about €50m in lost revenue per annum.
It also says it compares unfavourably with the estimated rate in Britain, which is less than 1%.
The C&AG notes that there is no regular assessment of the extent of evasion in Ireland. In comparison, it says, in Britain a roadside survey is conducted each year.
In response, the departments said they would consider options in relation to measurement of evasion. The Department of Transport said it intends to consult with Britain in relation to this.