The tax take is running slightly higher than expected according to the latest Exchequer returns. Figures published this afternoon show tax receipts to the end of November are €214 million higher than expected in the Budget.

Meanwhile spending at the various State departments is almost €1.4 billion lower than expected in the Budget.

However the Exchequer deficit still stands at €8.5 billion for the first 11 months of the year.

There was a 7.7% increase in income tax receipts in November and a 9.5% rise in the amount of VAT the Exchequer took in.

Peter Vale, tax partner at Grant Thornton, says these latest figures are showing increased activity in the domestic economy.

"This is by some distance the strongest set of Exchequer figures produced this year, with tax revenues coming in 3.1% ahead of forecasts" he said.

"In the context of our upcoming exit from the bailout terms they should give further confidence to both current and prospective investors in Irish debt".

"Strong earnings are now being reflected in people's spending behaviour, with VAT receipts ahead of target for the first time this year" he added.

However there is a concern whether the property tax payments at the end of November will impact on spending in December and January.