The Troika is set to publish its findings on the country's finances later this month.
The strong momentum in the Irish economy is expected to continue but it warned that risks remain.
According to RTÉ, the latest draft report suggests the strong economic growth is expected to continue in the short term, but risks remain, particularly Brexit and continued property price hikes.
It found that tax revenues increased at a healthy rate last year but warns without extra revenue being found in the years ahead, public sector wage increases could impact on the health service.
It also said that more should have been done in the last Budget to broaden the tax base.