The Government recorded a deficit of €1.5 billion (1.1% of GDP) for the first half of the year, latest figures from the Central Statistics Office show.
This compares with a deficit of €1.77 billion (1.4% of GDP) for the same period last year.
In comparison with 2016, between January and June State revenues were 3.5% higher at €35.6 billion.
Increases in the amount of tax collected (+3.8%), sales of goods and services (+5%), and higher social contributions (+4.3%) were behind the higher income.
However, Government expenditure over the same comparative time frame also rose - by 2.6% or €951m.
The main driving factors were pay increases (+5.6%) and 'other current transfers' (+11.7%) driven mainly by EU budget contributions.
According to the CSO, the gross national debt was €211.2 billion (74.3% of annualised GDP) at the end of June.
This compares with a debt level of €208.2 billion at the end of the first quarter of the year.
The rise in the nominal debt level in Q2 was driven by the continued issuance of both short-term and long-term debt securities.
Although the level of gross debt increased over this period, the corresponding debt instrument assets increased to a greater extent resulting in a reduction in the level of net debt.
