A sequence of large budgetary surpluses has reduced Ireland’s national debt to pre-pandemic levels.

Central Statistics Office (CSO) figures show gross debt fell by €5.7 billion to €209.9 billion last year, which equated to 62 per cent of national income as measured by the CSO’s bespoke measure gross national income (GNI*).

The reduction comes on foot of general government surpluses of €7.4 billion, €23.3 billion and €11.6 billion in 2023, 2024 and 2025.

Before the pandemic, in 2019, the State’s debt was €203 billion.

However, the outlay on Covid saw it balloon to €235 billion by 2021, which was more than 100 per cent of national income.

Before the financial crisis in 2007, gross national debt was just €47 billion.

Iran’s cyber-attacks on Irish-based companies and the ongoing impact of conflict in the Middle East

The CSO’s figures, which are provisional, indicate the Government recorded a general government surplus of €11.6 billion last year.

This represented a reduction of €11.7 billion on the 2024 surplus.

However the latter was inflated by what the CSO described as a one-off capital transfer revenue of €14.2 billion arising from the Apple tax ruling.

The general government surplus is different from the budget surplus (excess tax receipts over spending) as it encompasses all government arms and local authorities.

The surplus outlined in the CSO’s report is roughly in line with what the Government signalled at the time of the budget in October.

Strong income tax receipts linked to having a record 2.83 million people at work has boosted the Government’s finances so far this year

Exchequer returns for January and February combined show income tax receipts totalled almost €6 billion, which was €305 million (5.4 per cent) in advance of last year’s total at this stage.

The positive income tax trend reflects the current buoyancy of the labour market.

Exchequer data for March will be published next week. The figures will reflect the initial impact of the US-led war on Iran.

The hike in prices is expected to boost Government VAT receipts.

Minister for Finance Simon Harris warned this week that the current energy crisis was bigger than the previous oil crises in 1973 and 1976 and the gas crisis of 2022 “combined and is ongoing and worsening by the day”.

The Government cut excise duties on petrol and diesel last week by 15 and 20 cents respectively in a bid to shield motorists.

But the Economic and Social Research Institute (ESRI) criticised the measures as untargeted, suggesting most of the benefit would flow to well-off households.