State finances billions in the red

The State's finances were 13.3 billion euro in the red even though the Government took in more tax than predictable. The latest Exchequer figures showed revenue officials took in 470 million euro more in levies than predictable.

The Department of Finance said a higher-than-predicted corporation tax intake joint with smaller surpluses in excise and VAT offset falls in income tax. Despite the better than expected returns, taxes are still 1.3 billion euro below the first 11 months of last year.

Michael Noonan, Fine Gael finance spokesman, said the figures exposed a deep split in Irish society, revealing the hardship now facing huge numbers of Irish families. "On one side, the multinational sector and large companies are enjoying a reasonable resurgence," Mr Noonan said.

Striking a more conciliatory tone, Joan Burton, Labour's Finance spokeswoman, said that after three years of haemorrhaging tax revenues there was now evidence Exchequer figures were stabilising.

"Due to the continuing depressed state of the economy, tax gate are 646 million euro, or 4.1%, down on 2010 for the year to date," Ms Burton said.

"This serves to underscore the challenge facing any government in meeting the onerous repayments negotiated by the Fianna Fail government in their bailout agreement with the EU-IMF troika. "