The UK government borrowed £107.7bn in the financial year to April 2014, lower than the £115.1bn amount it borrowed the previous year.
In the Budget, the Office for Budget Responsibility (OBR) had estimated a deficit for the full year of £107.8bn.
The government wants to eliminate the budget deficit by 2017-18.
Borrowing in March fell to £6.7bn from £11.4bn a year earlier, excluding financial interventions, the Office for National Statistics (ONS) said.
Meanwhile, the figure for February was revised down from £9.3bn to £8.8bn.