The government remains on course to end austerity in the budget this month.

Exchequer returns published this afternoon show the deficit is now €2.5 bn better than this time last year.

At the end of September the coalition had taken in €36.1bn, but had spent €42.1bn.

But that shortfall is down €2.5bn on a year ago.

Tax revenues are almost €2bn better than a year ago, and €703m more than expected on budget day last year.

Income tax returns show more people at work, while big returns in VAT and excise show people are spending more.

Stamp duty continues to perform better than expected - showing more and more housing sales.

Spending is also under control, with overspending in health made up for by Social Protection and other departments underspending.

In a statement, Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin say while they need to remain vigilant, it is now time to look beyond consolidation and to put in place measures to allow the economy to grow.