The latest Exchequer returns show tax revenues are 5.8 per cent ahead of target in the first nine months of the year.

Figures for the first nine months of the year show almost all the major tax areas are ahead of schedule - with a huge surge in corporation tax.

Government spending meanwhile is around 1.3 per cent below projections, with Health the only problem area.

But the finance minister Michael Noonan says the extra leeway will NOT be used to go towards extra giveaways in the Budget.

He says the extra money will go towards debt reduction - which is better for Ireland overall.

His prudence comes as the Central Bank warns against any tax cuts and spending increases in the Budget in two weeks' time.

Our political correspondent Gavan Reilly reports.