The Office for National Statistics (ONS) said that net borrowing was £12.361bn – below forecasts of £14.75bn.
Meanwhile tax receipts rose by 3.6 per cent – the largest jump since April 2008.
The ONS said the February rise to £42.6bn came as economic conditions improved and VAT was raised.
Receipts from VAT rose 30 per cent to £6.9bn last month after the tax was hiked to 17.5 per cent from 15 per cent.
Total borrowing so far this year is now just below £131bn with £170bn the target for the full year.
A treasury spokesman said: "With one month of the financial year remaining, the figures are broadly in line with our Pre-Budget Report forecasts."
The government, which will deliver its annual Budget on 24 March, has pledged to halve its budget deficit over the next four years.