Chancellor George Osborne's deficit-busting efforts have been helped by a near £1.3 billion drop in Government borrowing in August.
Public sector net borrowing stripping out the distorting effects of bank bailouts fell to £13.2 billion in the month from £14.4 billion a year earlier - broadly in line with economists' expectations.
And the Office for National Statistics (ONS) also revised underlying borrowing for the 2012/13 financial year lower to £115.7 billion, down from an earlier estimate of £116.5 billion.
The independent Office for Budget Responsibility (OBR), set up to monitor the state's finances, expects underlying public sector net borrowing to rise in the latest financial year to about £120 billion.
The deficit in August was nursed lower by a £1.2 billion drop in central government borrowing to £12.7 billion. Local government borrowing edged up by around £200 million to £1.1 billion.
Corporation tax receipts were slightly higher at £1.3 billion, but income tax receipts fell to £10.5 billion from £11.1 billion.
A Treasury spokeswoman said: "Borrowing is down this month and revisions show that borrowing this year and last year was lower than previously thought. The economy is turning a corner, but there is a long way to go and the Government is sticking to the economic plan that has already cut the deficit by a third and enabled the private sector to create over 1.4 million new jobs."
Economists said the figures may show the improving economy is starting to filter through to reduce the state's borrowing needs.
Martin Beck, UK economist at consultancy Capital Economics, said public finances could improve at a faster rate than the OBR predicts.
He said: "August's public finances data suggests that the economic recovery could be finally starting to make its presence felt in the fiscal numbers. More good news is a downward revision to borrowing in 2012/13."