Rising health spending is going be a "key challenge" for the public finances if it continues at its current trajectory, according to the Government.
The observation is included in the Medium Term Expenditure Framework document which was published today.
It was released following criticism from the Irish Fiscal Advisory Council earlier this week which said the Government had failed to publish the report, as it had promised during the summer.
The document says Ireland is the third-highest spending on health within the EU as a share of the economy as measured by gross national income.
The report says that there is "scope to improve spending efficiency across the health service particularly in relation to procurement and utilisation of staffing cohorts".
At a press conference to launch the report, Minister for Public Expenditure and Reform Jack Chambers said that there had been "fair criticism" from the Irish Fiscal Advisory Council on significant spending increases had not budgeted for over recent years.
Mr Chambers said: "Moderation of current expenditure is a particular priority for this Government."
He said the unbudgeted spending increases had occurred because of issues such as the cost-of-living crisis.
But he said spending ceilings had been agreed with ministers in advance of the Budget and the focus would be on "more credibility" on spending.
On the rising health budget, he added: "We know health demographics are only heading one way."
