The Minister for Finance has said he will not be ignoring the advice from the Irish Fiscal Advisory Council (IFAC) and is listening very carefully to what it has to say.

Speaking to reporters in Dublin, Paschal Donohoe said that he and the Department of Finance have been increasingly focused on some of the issues that the IFAC has emphasised in its report today, particularly since the second half of last year.

Mr Donohoe said at different points in Ireland's political and economic history, and particularly at a point in the past that our economy was doing as well as it is now, warnings like this when they were sounded were either dismissed or ignored.

He said he would not be doing that and will be studying what the IFAC has said in its Fiscal Assessment Report.

The finance minister said he and his department have called out challenges that the country could have in relation to the future of corporation tax policy.

He said last year he had issued a debt report on national debt levels within the economy and will do this again.

In relation to compliance with fiscal rules, Mr Donohoe said the European Commission, who are the gate-keepers of fiscal rules, have assessed Ireland's budgets and have found them to be compliant.

However, he said it is also clear that there have been within-year increases in spending beyond what was set out in last year's budget and that was in particular due to increases in health expenditure.

But he said the Government is also now investing in the future and a key driver of expenditure in the economy is the very significant changes taking place in capital expenditure.

The minister said he is using some of the increases in corporation tax receipts to increase investment in infrastructure so that the country is better positioned to develop both the economy and society in the future.

He said he had also made the significant change in the last budget to increase VAT in the tourism and hospitality sector, in order to widen the tax base and find new ways to reduce reliance on corporation tax in the future.

He added that the estimates this year were built on corporation tax figures that were lower than what was collected a year ago.

He said he had put in place actions to deal with challenges that we may have with corporation tax in the future.

Regarding spending, Mr Donohoe said between 2014 and 2019 gross voted current expenditure grew by an average of 4%, compared to 11% at this point a decade ago.

He said between 2014 and 2019 capital expenditure had increased by 90%.