According to the latest Exchequer returns, the fiscal deficit stood at $ 9.5 billion at the end of August.

This compares with a deficit of $ 625 million in the same period last year.

The $ 8.8 billion decline is mainly due to an increase in government spending.

Expenditure increases are concentrated in the health, employment and social security departments.

Total government spending increased by 28%, or $ 9.46 billion, over the previous year.

But tax revenue remains better than expected.

Tax revenue in August was down $ 11 million, or 0.4 percent, compared to August last year.

For the year to the end of August, total tax revenue fell 2.3%, or $ 802 million, compared to the same period in 2019.

This is the result of a larger-than-expected increase in corporation taxes recorded earlier in the summer and the imposition of a strong tax before the pandemic strikes.

“The decline in most tax levels is less than expected,” the finance ministry said in a statement.

Income tax remains better than expected, up from just $ 194 million at the end of August or 1.4 percent last year.

VAT revenue declined by 21.3 per cent over the same period last year.

The $ 2 billion euro payment from Nama to Exchequer also helped public finance.