State's debt falls for first time in recent years

National debt: The national debt declined to €35.92 billion at the end of 2006 from €38

National debt:The national debt declined to €35.92 billion at the end of 2006 from €38.18 billion a year earlier, the report said.

Mr Purcell said the administration expenditure incurred by the National Treasury Management Agency, which manages the debt, rose last year to €24.4 million from €19.9 million in 2005.

The annual cost of servicing the national debt rose to €2.37 billion in 2006 from €2.24 billion in 2005, the report said.

The performance in 2006 marked a decline in the debt for the first time in some years.

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The outstanding national debt stood at €36.36 billion in 2002, rose to €37.61 billion in 2003, €37.84 billion in 2004, and €38.18 billion in 2005.

The National Treasury Management Agency is also responsible for the investment and management of funds remitted to the exchequer by the Post Office Savings Bank.

Funds due to depositors and creditors rose to €1.55 billion in 2006 from €1.49 billion in 2005.

The value at cost price of related investments held by the Post Office Savings Bank Fund rose to €1.56 billion from €1.5 billion.

The year-end surplus was static at €10 million.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times