"Budget 2017 forecast a General Government Deficit for 2016 of 0.9 percent of GDP. The exchequer figures for end-2016, released today, support that forecast," the ministry said in a statement. The 2015 deficit was 1.9 percent.

Noonan last month told journalists that the deficit could fall as low as 0.7 or 0.8 percent if tax receipts were strong enough, but December's tax returns published earlier on Wednesday were weaker than forecast.

(Reporting by Conor Humphries; Editing by Alison Williams)