The Government has said its payment of €270m to Irish Water is in line with the company's capital funding plan.
Company documents filed this week for Irish Water show it received the cash in return for issuing new shares to the Government, according to the Irish Times.
Responding to a query from RTÉ, the Department of Finance said the money came from the Central Fund and has no impact on any other areas of government spending this year or next.
It added the payment was "not connected to the decision to suspend water charges".
This shortfall will be dealt with in the context of the next Budget.
Under the transaction, which took place last week, Irish Water transferred €270m worth of shares to the Departments for Finance and Housing.
This transaction was provided for in Irish Water’s business plan endorsed by the Government in 2015.
