The Central Bank urged the Government to maintain a “prudent” fiscal stance ahead of the next election as a strong set of tax returns and a successful sale of long-term debt delivered a boost to the public finances.

Tax revenues rose €460 million in January compared with 2014, and the National Treasury Management Agency raised €4 billion in 30-year bonds at an annual interest rate slightly above 2 per cent, the State’s first sale of debt with a three-decade time-span.

Each development was taken as a sign of deepening recovery, and the bond sale in particular was seen as an indication that anxiety over the fate of Greece had not undermined countries such as Ireland.

Still, the Central Bank warned further retrenchment would still be required in the next three years to control the underlying fiscal deficit.

Central Bank chief economist Gabriel Fagan declined to quantify the required effort. But he said EU rules compelled Ireland to keep cutting the structural deficit, an estimate of what actual deficit would be if the economy was at full capacity.

Achievements

“It’s essential to build on and consolidate the achievements . . . made so far in a number of areas,” said Mr Fagan.

Moody’s credit rating agency said looming public pay talks and promises of further tax cuts might lead to “budgetary pressures”. While the process of reducing debt was resilient to slower fiscal consolidation, Moody’s said the State would be vulnerable if growth dropped.