UPDATE 1-Irish tax revenues beat target, overspend shrinks

* Tax revenues 2.5 pct ahead of target in 7 months to July

* Current spending 1.3 pct above target, down from 2.3 pct above in June

* Govt deficit halves to 9 bln euros due to one-off factors

DUBLIN, Aug 2 (Reuters) - The Irish government was ahead of its revenue goals at the end of July, keeping it on target to meet its 2012 deficit target under its EU/IMF bailout, but the government said it had spent slightly more than it had planned.

Tax returns were 2.5 percent, or 500 million euros ($607.98 million), ahead of target in the first seven months of the year, with income, value-added and corporation tax receipts all better than planned, the finance ministry said in a statement.

Net voted current expenditure was 1.3 percent, or 317 million euros, above target in the year to July, down from a 2.3 percent overspend in the six months to June.

"On a first read the numbers look good," said Eoin Fahy, an economist at Kleinwort Benson Investors in Dublin. "Tax is going the right direction strongly, spending is still ahead of target but only marginally."

Ireland's budget deficit for the first seven months of the year halved to 9.1 billion euros from 18.9 billion a year ago, largely due to one off factors.

A deal struck in March to reschedule a 3.1 billion euro annual cash payment of high-interest IOUs that Dublin issued to prop up two state-run banks helped reduce the deficit.

Much of the remainder was due to one-off recapitalisation payments made to Irish state-owned banks in July 2011, the Finance Ministry said. ($1 = 0.8224 euros)