Ireland's finances plunge into deficit

Ireland's finances have plunged into deficit, according to Department of Finance figures for the first three months of this year.

The first-quarter report shows that Ireland is now in the red to the tune of €113m, mainly due to a significant rise in Government spending at the beginning of the year.

Spending for the period from January to April was €1.4bn higher than during the same period last year.

One of the reasons given for the deficit was the payment of €120m to public sector workers under the

Programme for Prosperity and Fairness.

Despite the news, the Department of Finance insisted that Ireland is still on target for a small

surplus by the end of this year.