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According to the Irish Times, the deficit exceeds previous forecasts and is due in part to the continued declined of tax revenues.
Richard Burton, the finance spokesman and deputy leader of the opposition party Fine Gael, predicted by the end of the year the tax shortfall would be €6 billion, double previous estimates from the taoiseach Brian Cowen.
"In the time the government have been away on holidays, their July predictions for the economy and taxes have been shown to be 100 per cent off-target," Mr Burton commented, adding: "It is now time that the government ... got a grip on the deteriorating Irish economy."
In July, the Fianna Fail government predicted a tax shortfall of €3 billion, however a rapid slowdown in consumer spending has impacted on VAT receipts.
A recent survey found that only one in five people in Ireland have made significant cutbacks in their spending as a result of the economic slowdown, reports the Irish Examiner.
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