Inflation is "at or close to the peak", the Finance Minister Michael McGrath has said.

McGrath was speaking at the Department of Finance yesterday, while announcing last year's tax and spending figures.

He said: "We do think that we are at or close to the peak at this point and that we will begin to see a moderation of inflation, particularly across quarter two and beyond."

However, Public Expenditure Minister Paschal Donohoe sounded a note of caution. Speaking about Eurozone inflation, he said: "While the change in inflation is something that is to be welcomed and to be acknowledged, I think it's too early to be able to conclude yet that is the sign of a trend that we can expect to continue across all of next year."

It comes as revenue growth left the Government with a €5bn surplus last year, according to Exchequer figures. The State collected a record €83.1bn in taxes in 2022, an annual increase of €14.7bn.

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Department of Finance figures show that corporation tax receipts amounted to €22.6bn last year, nearly 50% higher than a year earlier.

However, the department acknowledged that a significant part of the revenue stream is expected to be one-off in nature. Mr McGrath said the corporation tax receipts painted an "artificially positive" picture of the economy and that there were in fact "serious vulnerabilities" in Irish finances.

He said part of this windfall would be transferred to the National Reserve Fund "to rebuild our fiscal resources".

He also said that "keeping the public finances on a sustainable trajectory" puts us in the best position to meet future challenges, adding: "That is what this Government will continue to do."

Income tax receipts last year hit €30.7 bn, up 15% on the figures from 2021, while VAT receipts were €18.6 bn in 2022, an increase of €3.2.bn from the previous year.