The Coalition has taken in €1.4 billion more than expected in taxes so far this year, according to Exchequer returns published this evening.

The figures show an improvement in the deficit by €3.5 billion compared to a year ago.

At the end of August, the State was in the red to the tune of €1.3 billion - however that is an improvement of €3.5 billion compared to the same time last year.

The tax take continues to bring in extra money, at €27.3 billion taken in. That is up nearly 10% on a year ago, and is a whopping €1.4 billion more than Michael Noonan predicted in the last budget.

VAT performed well in a month where it wouldn't normally, and it was 28% ahead of predictions last month.

However Corporation Tax is the biggest contributor - €900 million more than predicted on budget day has been taken in.

Spending by Government is also under control and is below what was expected. While Health has overspent by €277 million, under-spending by Social Protection and Environment make up for that.

Finance Minister Michael Noonan said, "the performance of income tax is particularly welcome and comes on the back of targeted reductions in income tax and USC in Budget 2015.

"The recent strong economic and jobs data, coupled with the strong exchequer performance to date means we are well on track to exceed our targets for 2015. The public finances are in a strong position as we prepare to deliver Budget 2016 next month," he added.

Director of Policy with Chambers Ireland, Mark O’Mahoney, says today's publication is welcome news: