The public finances were in the black by €2.42 billion at the end of March, nearly three times the surplus at the end of the same quarter last year, according to the latest figures.
Releasing the March Exchequer figures this evening, the Minister for Finance said he was confident they supported the view that the economy will grow by over 4½ per cent this year, the strongest growth rate in the euro-area.
Minister for Finance Brian Cowen
Figures released this evening by the Department of Finance show an Exchequer surplus of €2,420 million compared to a surplus of €880 million at the end of the first quarter 2005.
The Department of Finance has budgeted for a deficit of €2,927 million for this year as a whole.
Tax revenue to date is €10,749 million, some €436 million ahead of budget at the end of March, Mr Cowen said.
Year-on-year tax receipts are up by 19.1 per cent compared to the projected increase of 14.3 per cent to the end of March.
Mr Cowen said the best performing tax sectors were capital taxes ( up €19m), stamps ( up €129m), corporation tax ( up €127m) and excise (up €55m). VAT and income tax are €10m and €84m below their projected targets respectively.
Non-tax revenue in the first quarter of 2006 was €116 million. This compares to €105 million for the same period last year and is in line with the Department's projections.
According to the figures, the current account balance at the end of March shows a surplus of €2,111 million compared to a surplus of €1,365 million for the same period last year and a budgeted surplus of €4,397 million for 2006 as a whole.
The capital account balance at end March showed a surplus of €309 million compared to a deficit of €484 million for the same period last year and a budgeted deficit of €7,324 million for 2006.
The Minister for Finance Brian Cowen said: "The results to the end of the first quarter confirm that the public finances remain very much on track. Tax revenues are ahead of profile, with capital taxes performing particularly well.
"Public expenditure is in line with profile. I am confident that these figures support the view that the economy will grow by over 4½ per cent this year, the strongest growth rate in the euro-area. Continued growth, however, will rely on maintaining prudent economic and fiscal policies and on retaining a competitive and flexible economy."