Finance experts today warned against talk of a return to the Celtic Tiger after Exchequer figures showed a better than expected budget deficit.
Returns from the Department of Finance revealed a deficit of €418 million so far this year. This compared to a deficit of €1,034 million for the same period in 2003, and a forecasted budget deficit of €2,806 million for the whole of 2004.
Dermot Mulligan, principal officer at the department, said talk of a return to the boom years of the 1990s was inappropriate.
"There is a lot of talk about the return of the Celtic Tiger, but you have to remember when the Celtic Tiger was around we had economic growth rates of 9-10 per cent and above," Mr Mulligan said.
"No-one is talking about growth rates of that level at the moment. It is more like 5 per cent.
"Talk of the Celtic Tiger is not really appropriate at this time."
The Exchequer figures also showed that around €640 million of the total tax receipts handled by the government were earned through the Revenue's special investigations.
Income tax receipts were 21.4 per cent above forecast mainly due to the special investigations.
Brian Cowen, Finance Minister, said the prudent management which had maintained a low budget deficit would be continued.
"The Exchequer returns confirm the improvement in public finances revealed at mid-year," Mr Cowen said.
"Tax revenue is ahead and spending is on target. This is a result of prudent fiscal management which I intend to maintain."