An Exchequer surplus of €95 million was recorded in 2002, contrary to predictions that the figures would show a deficit of around €400 million.
The figures released yesterday were below Minister for Finance Mr McCreevy's Budget day target of a €170 million surplus.
Mr McCreevy welcomed the results - the fifth successive surplus, noting in particular that public spending increase ran at 13.9 per cent - 0.5 per cent lower than the target for the year.
The Minister said a firm rein would need to be kept on public finances and predicted Exchequer deficits of almost €2 billion in 2003, €3.4 billion in 2004 and €3.7 billion in 2005.
"The 2002 out-turn is encouraging but fiscal restraint remains a necessity for the period ahead," said the Minister.
After the general election Mr McCreevy said the public finances were in a worse state that previously thought and that economic growth and the Exchequer tax-take would be below expectations.
In the autumn, he announced cuts in planned spending and in December's budget increased VAT and other forms of indirect taxation.
The figures were boosted by an improvement in tax receipts late in the year but the 4.9 per cent increase on 2001 down on the Budget 2002 projection of 8.6 per cent.