The Department of Finance says the public finances have shown a more than €400 million improvement in the first month of the year.

The exchequer recorded a surplus of almost €1.2 billion in January, up from €781 million in 2015.

Income tax was up by 8.7%, VAT increased by 6.6% and general Government expenditure was down by by 7.6%.

Minister For Finance Michael Noonan said the performance of income tax, VAT and excise highlighted the stabilising of the public finances and growing the economy.