Exchequer sees deficit decrease by nearly €6bn

The Exchequer recorded a deficit of €18.74bn in 2010, as compared to an Exchequer deficit of €24.64bn in 2009.

Tax receipts in 2010, at €31.75bn were around €700m above the Budget 2010 target with the surplus primarily driven by a solid performance from corporation tax, VAT and Excise, although they were pulled back a bit by weak income tax returns.

Expenditure by departments is just about under control, while savings of almost a billion were made from the capital budget.

Commenting on the end of year Exchequer returns Finance Minister Brian Lenihan said the deficit is in line with the Budget 2010 target set in December 2009 and confirms that Ireland's public finances have stabilised.

The Finance Minister said: "There are real grounds for optimism about the Irish economy."

Mr Lenihan said the figures "show optimism" and that Ireland has entered 2011 on the road to economic recovery.

He added exports last year reached an all time high and claimed that is where future growth will come from.