The exchequer deficit stood at €24.6 billion at the end of 2009, compared with a deficit of €12.7 billion at the end of the previous year.

Despite pressures on the budget of the Department of Social and Family Affairs due to swelling numbers on the Live Register, the Government cut net expenditure by almost €2.2 billion last year, according to the end-of-year exchequer returns data issued yesterday.

However, this was more than cancelled out by the tax declines, the Anglo payment, a €1 billion increase in the interest payments on the national debt and a €1.3 billion rise in the payment to the National Pensions Reserve Fund compared to 2008.

Mr Lenihan said the €1 billion rise in debt servicing costs was "clear evidence of the need to take action to achieve long-term sustainability of the public finances".

About one in every €12 collected in tax went to service the national debt in 2009. By the end of 2014, the Department of Finance estimates, more than €1 in every €5 collected in tax will be required to pay the interest on Ireland's debt.

Tax revenues reached €33 billion in 2009, which took the annual tax haul back to 2003 levels. The tax receipts for the year were down from €40.7 billion in 2008 and also fell short of the €34.4 billion target set at the supplementary budget last April.