The Government is being warned that any new increases in expenditure - such as funding higher public sector pay - would have to be offset by lower spending elsewhere, or changes in taxation.

Public Expenditure Minister Paschal Donohoe has said it would cost €2.2bn a year to eliminate lower pay rates for new public servants.

The Central Bank has spent €119m on professional fees since 2011, including expenditure of €27.55m last year.

The Northern Ireland Office (NIO) breached its budget by around £2m last year because of uncertainty over terrorism compensation awards and work at Hillsborough Castle, last year’s annual report said.

Talks on how much of the Government’s €750m public expenditure pledge will be given over to pay restoration for its staff will begin this afternoon, with the pension levy likely to feature high on the agenda over the coming days.