Tax receipts increased by 10 per cent year-on-year to €11.8 billion in the first three months of this year, according to Exchequer returns published this afternoon.
The surplus of receipts was driven by stamp duty returns, which were €17 million ahead, and corporation tax, which was €246 million ahead of the same period in 2006.
This left the surplus of receipts over spending at €1.8 billion - almost a third lower than the surplus recorded in the same period of 2006.
According to the figures, tax revenue exceeded Budget day expectations by €28 million, which is considerably less than the €436 million excess that was recorded over the same period last year.
Capital gains tax receipts amounted to €844 million, compared with €926 for the same period last year.
Commenting on the results. Minister for Finance Brian Cowen said: "Both tax revenues and expenditure are more or less where we expected them to be at this point in the year.
"These results, combined with recent CSO data, show that the Irish economy continues to perform well. My department is forecasting a continuation of strong economic growth, with Gross Domestic Product and Gross National Product both expected to rise by 5.3 per cent this year.
Mr Cowen said continued growth would rely on "maintaining prudent economic and fiscal policies and on retaining a competitive and flexible economy."
Capital gains tax, income tax, excise duties and VAT are all behind target, the returns showed.
At the end of March total net Government spending was €9.8 billion, compared with €8.3 billion for the same period last year. This is an increase of 18 per cent.