The value of National Pensions Reserve Fund rose by €3.5 billion to €18.9 billion in 2006.
The National Treasury Management Agency's (NTMA) annual report for 2006 shows the fund benefited from over €2 billion in investment returns and a €1.4 billion contribution from the Exchequer.
The NTMA, which acts as the asset and liability management arm of the Government, said the fund earned an investment return of 12.4 per cent in 2006 and was equivalent in value to 12.6 per cent of GNP.
With a 2006 budget surplus of €2.3 billion - rather than the earlier estimated deficit of €3 billion - and strong gains on the National Pensions Reserve Fund, the State was better off by some €7 billion more than might have been expected at the beginning of the year, the NTMA noted.
The national debt decreased by €2.3 billion and stood at €35.9 billion at end 2006.The National Debt, less the National Pensions Reserve Fund and other funds managed by the NTMA, is now equivalent to less than four months' tax revenue, down from six and a half months at end 2005.