The latest Exchequer figures for the two months to the end of February show a deficit of €2.072 billion, up from deficit of €1.945 billion reported the same time last year.
The Department of Finance said that increased tax revenues were offset by higher debt servicing costs and higher expenditure levels. It added that the deficit is in line with expectations.
The figures show that tax revenues in the two month period rose by 21.8% to €5.893 billion, with tax revenues 12.5% ahead of expectations. However the figures were skewed by two significant factors relating to corporation tax and income tax.
The Department said that about €0.25 billion in corporation tax receipts, which had been due last December, were not paid until January and so did not form part of the Budget 2012 estimates.
Secondly, income tax was up by 32.7% compared to the same time last year and 12.5% ahead of targets. Most of the over-performance is the result of a technical reclassification of receipts from employers which they had previously returned as PRSI. This has resulted in the subsidy the Exchequer makes to the Social Insurance Fund being higher than expected - what is gained in income tax is offset by higher current spending.
Striping out these anomalies would have left the tax profile 3.5% ahead of target.
Today's figures show that VAT returns were 1.3% lower than expected at €1.929 billion, while excise duties were 2.2% weaker than forecast at €640m.
Stamp duty for the two months came in 2.9% ahead of target at €89m, while capital gains tax was 2.6% higher than originally forecast at €149m. Capital acquisitions tax and customs intake came in marginally below Government targets.
