The Government finances recorded a deficit of €1,427m in the first half of 2007, according to the latest Exchequer figures.
The Department of Finance had forecast an overall deficit for the year of €547m.
It believes accelerated spending on capital projects and the National Development Plan is responsible for the much of the deficit.
However, it expects that the deficit will be lower by December, due to an influx of taxes towards the end of the year.
VAT and income tax are broadly on target. VAT amounted to €7,279m in June, with income tax bringing in €5,973m. Corporation Tax raised €1,557m - €173m ahead of target.
However, excise duties were €155m behind Department forecasts at €2,895m. This is largely due to lower than expected car sales.
Capital Gains Tax is also down on forecasts, raising €1,046m in the first six months of the year. Stamp Duty brought in €1,696m, which was €97m below Government expectations.
