Fine Gael has called on the Government to use the extra tax revenue received in the first quarter of the year to pay off some of the national debt rather than go to "a pre-election slush fund for profligate ministers".

Labour meanwhile has said the buoyancy in tax revenues shows that cuts being made to public services are unnecessary and should be reversed.

Fine Gael's deputy leader Mr Richard Bruton said yesterday that the €317 million in tax revenue received above the expected figure "should be kept away from Government ministers who have shown a clear inability to get value for taxpayers in their spending programmes."

He said the spending of €15 million on the Punchestown equestrian centre development was an example of such profligacy.

Labour's finance spokeswoman Ms Joan Burton said the buoyancy in tax revenues "highlight the needless damage being done by mean-spirited and unnecessary cuts to public services.

"The Government finds itself the unexpected beneficiary of €225 million in extra capital gains taxes, yet it is persisting with the 16 welfare cuts, including cuts in widows entitlements, which will yield only €58 million, at a huge cost in human terms.

"These Exchequer returns, this week's ESRI report on growth prospects for the economy, and the massive windfall from offshore tax evaders, all show that those cuts are not necessary.

"In reality, the Government is running the tightest possible ship in order to build their war chest for the next general election."

Meanwhile, Labour's enterprise, trade and employment spokesman Mr Brendan Howlin said the latest unemployment figures showing a 2.5 per cent decrease in the numbers on the Live Register was welcome.

However, he said that there was "absolutely no room for complacency given that there are roughly 35,000 more people out of work than this time three years ago".