Exchequer receipts to the end of September came in at €33,407,773, 1.5 per cent more than forecast.
The government has collected almost half a billion euro more than expected, meaning it will have the headroom for Budget 17's promised tax cuts next week.
Income tax including USC came in just under €13 billion, or one per cent below expectation.
The improvement was largely driven by an increase in tax revenue.
September had more positive tax receipts following a weak August.
The September figures are below target, yet ahead of the same month last year.
The Government collected over €4.1 billion in corporation tax in the year to September, which was €644m, or 18 per cent, more than had been expected.
Revenue from excise duty was also ahead of target at €4.4 billion, five per cent above forecast.
VAT receipts remain 2.7 per cent behind the forecast for 2016 with €10 billion collected.
With the exception of certain sectors, in particular motor, increased disposable income is not translating into the expected spending.