Total Exchequer income in the first 10 months of the year was €28.9 billion, 14 per cent up on the €27.3 billion recorded for the same period last year, returns for the end of October show.

The increase was mainly driven by an 8 per cent increase in the tax take to €26.7 billion from €24.7 billion, the Department of Finance said earlier.

Budgetary measures, such as the universal social charge, and the pension levy imposed by the Government earlier this year to pay for its job-creation plans, boosted the amount of tax collected by the State.

The Republic’s deficit jumped by 50 per cent to €22.2 billion, largely as a result of the €10.6 billion given to the banks earlier this year to recapitalise them.

The department said that the income tax take was €125 million, or 1 per cent, below its budget target, while VAT was €383 million behind the projections for this year.

Alan McQuaid, economist with Bloxham stockbrokers, said that the figures reflected a weak domestic economy and generally poor world conditions.

He warned that the Government needs a turnaround in private demand to achieve the growth needed to make inroads into the State’s debts.