Income tax and VAT receipts grew last month, prompting further claims that the Republic’s economy has returned to growth.

Today’s Exchequer figures show that the Revenue collected €2.35 billion in income tax in November, almost 8 per cent more than the €2.2 billion returned during the same month last year.

VAT returns increased at an even stronger rate, indicating that consumer spending is up.

The sales tax delivered €1.63 billion to Government coffers in November, 9.5 per cent more than the same month last year, when the figure was €1.48 billion.

Minister for Finance, Michael Noonan, said "the strong performance set out in today's figures is hard evidence that the recovery seen in the high frequency data is taking hold across the economy".

Overall, the total amount of income tax paid in the 11 months to the end of November was €35.2 billion, 4.2 per cent ahead of the €33.8 billion collected during the same period in 2012. The total was also ahead of the budget target, which was €34.97 billion.

Total revenues, tax and non-tax, for the 11-month period, came to €51.5 billion, 8.3 per cent more than the €47.6 billion collected during the same period last year 5 per cent ahead of the Government’s €49 billion budget target.

The Government spent €60.08 billion during the first 11 months of the year, 0.8 per cent less than during the same period in 2012. The figure was 4.4 per cent less than its budget target of €62.85 billion.

Conal Mac Coille, economist with stockbroking firm, Davy, said that the Government is on track to "comfortably beat" its deficit target for the year of 7.5 per cent of gross domestic product.