The Exchequer has recorded a surplus of some €880 million for the first quarter of the year, according to figures just released by the Department of Finance.
This is more than twice the €272 million surplus announced for the same period in 2004.
A budget deficit of almost €3 billion is predicted for 2005 as a whole, according to the Department's figures.
Tax revenue so far this year is already €221 million ahead of the budgeted figure. The Department said a better-than-expected VAT figure accounts for €139 million of this.
Income tax, corporation tax, capital gains tax, inheritance tax and corporation tax were all slightly down on the same period last year.
Year-on-year tax receipts were up 12.6 per cent compared to a targeted increase of 9.9 per cent to the end of March. Non-tax revenue, meanwhile, was in line with expectations at €105 million, a 14 per cent increase on the same period last year.
Capital receipts, however, were down 32 per cent on last year at €259 million compared with €341 million for the first three months of 2004.
Overall Government spending was up by 6.5 per cent on the first quarter of 2004 at €7,540 million. The Department said this figures was some €438 million below the profile published in January and compares to a planned increase of 11 per cent for the year as a whole as provided for in the revised estimates.
Net capital spending was €414, some €137 million below projected figures.
The Department of Finance said the variation was primarily explained by slower-than-expected spending by the Health Service Executive and by the Departments of Transport and Environment.
Labour Party finance spokesperson Joan Burton said the figures show the Government's is failign to meet its own investment targets.
"This is a matter of basic managerial incompetence and lack of political will. There is simply no political driving force behind the public investment programme.
"Investment in a first class infrastructure is essential to building the potential for future non-inflationary growth and for attracting foreign investment. The Government is simply not delivering," she said.
Labour Party spokeswoman on finance Joan Burton said the Exchequer returns show investment in our economic future "falling further and further behind".
"While I welcome the broadly positive results in terms of revenue buoyancy, it is clear that the public capital programme is still in disarray," Ms Burton said.
"Between 2002 and 2004, Exchequer capital spending fell by 18 per cent in real terms, or by €1 billion. Today's figures show that this decline has continued into the first quarter of 2005.
"The Government is simply not meeting its own investment targets. This is a matter of basic managerial incompetence and lack of political will. There is simply no political driving force behind the public investment programme."
Ms Burton said investment in a first-class infrastructure is "essential to building the potential for future non-inflationary growth and for attracting foreign investment. The Government is simply not delivering."
Fine Gael finance spokesperson Richard Bruton said the high surplus was caused by stealth taxes and indicated the need for reform of the tax system.
He said while the taxpayer continues to deliver cash into the public coffers "there is little or no evidence that public money is being spent responsibly".