Official figures showing a €49.7m surplus in public finances during the first two months of the year were yesterday hailed by the government as evidence of its successful battle to reduce the national debt.

The government noted this was the fifth month in a row that revenue had exceeded expenditure. As a result it said that for the first time in recent history national debt had gone down from €5.4bn in October to €5.2bn at the end of February.

In the last months of the Nationalist Party in government national debt was soaring by some €100m a month, the government said.

Figures published by the National Statistics Office showed that in January and February recurrent revenue increased by 26.3 per cent over the corresponding period of 2014, standing at €610m.

The major contributors were higher proceeds from EU grants (€103.1m), income tax (€9.4m), licences taxes and fines (€5.5m), as well as Value Added Tax (€5m).

Total expenditure increased marginally by just 0.5 per cent, and reached €560.3m. The NSO said that the highest increases in recurrent expenditure were recorded in personal emoluments (€7m) and operational and maintenance expenses (€2.7m).

Lower outlays were registered in programmes and initiatives by €8m namely in social security benefits (€9.8m), feed-in tariff (€5m), medicines and surgical materials (€4m) and eco reduction (€3.4m).

These were partially offset by increased outlays in the contribution towards Church schools (€9.6m), public service obligations (€2.5m) and free childcare services (€2.5m).