The Government has said that it may not require a second bailout if it succeeds in restructuring Permanent TSB and agrees a deal on the promissory notes which finance IBRC.

In the latest review of the IMF/EU bailout programme, the Government said that meeting these objectives would strengthen confidence and give impetus to Ireland's economic recovery.

It said this would ensure that market access is back in a durable manner and would avert ''the need to continue to rely on official financial support''.

The Government said it has met its commitments under the programme's seventh review in terms of policy reforms as well as funding targets.

Among the achievements during the last period under review, it said it has agreed on a detailed plan for the transfer of water service provision to Irish Water.

It also made provisions for an increase in staff at the Competition Authority and assessed the scope for reform of welfare payments.

A due diligence process has also been carried out on the state assets which have been identified for sale next year.

The ''overarching, strengthening, restructuring and right-sizing of the domestic banking sector and the credit union sector'' is also progressing according to plans, the Department of Finance said.

The Government added that it is on track to deliver a budget deficit within the 8.6% of GDP target for this year.

It said the December Budget will see consolidation measures of at least €3.5 billion.

The Government wants to raise at least €1.25 billion in revenue from a broadening of the tax base, a value-based property tax, a restructuring of motor tax, a cut in general tax expenditures and an increase in excise duties.

Expenditure by government departments will be cut by €2.25 billion which will include social welfare cuts, a reduction in the total pay and pensions bill and other reductions in capital expenditure.

The report noted that the size of the public sector has been reduced by 9% since 2008.

It also said that it is preparing for a new personal insolvency framework and will soon appoint a director of a new insolvency service.

The document says the Government is taking steps to tackle ''unacceptably'' high unemployment levels and that pilot programmes are underway to retrain people who are on the Live Register.