GOVERNMENT borrowing fell dramatically in the first five months of the year, according to figures released yesterday.

The Exchequer Borrowing Requirement - the amount the Government borrowed for the first five months was only £16.8 million, compared to £632 million for the same period a year earlier.

The low borrowing was mainly the result of a huge surge in tax revenues, which were up 16 per cent on the same period last year, reflecting the growth in employment. Income tax was up 17.6 per cent compared to a Budget target of 8 per cent. Minister for Finance, Mr Quinn said tax buoyancy would now be greater than £400 million for the year. "A complete reevaluation of the forecasts is being prepared by Finance with the Revenue," he said.