New figures from the Central Statistics Office show that the Government recorded a deficit of €2.8 billion for the first nine months of 2018.
This compares with a deficit of €3.1 billion the same time last year and equates to 1.2% of GDP.
The CSO said that Government revenue grew by €2.5 billion - 4.6% - in the nine month period, mainly on the back of a 5.7% increase in taxes and social contributions.
Today's figures also show that Government expenditure levels rose by €2.2 billion (up 3.8%) when comparing the first nine months of 2018 and 2017.
The CSO noted that increases in employees' pay levels - which rose by 6% - and use of goods and services - up by 7.9% - were partially offset by a decrease in interest, which fell by 9.8%.
