He said given the uncertainty caused by Brexit and the controversy surrounding the country’s corporate tax system, it was important to pursue policies for economic growth, job creation and debt control.

In particular, he was keen to emphasise that the 12.5% corporation tax rate would continue and appointed an ‘external expert’ to undertake a review of Ireland’s corporation tax code.

He also sought to stimulate the economy by enhancing the capital gains tax (CGT) entrepreneurs relief by further reducing the rate of CGT from 20% to 10% on disposals of qualifying assets up to €1m (£901,000) of chargeable gains, as well as committing to a future review of the €1m lifetime threshold applicable to the reduced rate.

There was also a move to improve the allowance for inheritance tax, with an increase in the threshold for Category A capital acquisitions tax (applicable to inheritances or gifts from parents to their children) by €30,000, to €310,000.

There will be an increase to the flat-rate addition for farmers not registered for VAT from 5.2% to 5.4% from 1 January 2017.

Noonan confirmed the retention of the 9% VAT rate on tourism activities and a focus by the Irish tax authority on offshore tax evasion.

Noonan also released an update on the Irish government's international tax strategy. It outlines how the corporate tax regime meets ‘the highest standards in tax transparency’, and restates the commitment to meeting new international tax principles, as set out by the OECD through the Base Erosion and Profit Shifting (BEPS) initiative.

As part of the review of corporation tax in Ireland, he appointed Seamus Coffey, an independent expert and lecturer in economics at University College Cork to conduct a review of the Irish corporation tax code. His specialist areas include microeconomics, government and business, advanced microeconomics and econometrics.

‘Whatever the final settlement, what we know with certainty is that Brexit has increased risk to the Irish economy and, as well as introducing specific measures to assist particular sectors of the economy, we must also put in place safety nets to protect us against future economic shocks,’ Noonan told the Dáil, the Irish parliament, in the first Budget of the new Fine Gael-led coalition government.

The government is also composed of independents and relies on the main opposition party Fianna Fáil.

Michael McGrath, Fianna Fáil’s finance spokesman said the Budget was much fairer and decent as a result of his party’s input.

Ronan McGivern, tax partner at Dublin-based firm Russell Brennan Keane said: ‘This budget is unique given the number of parties’ fingerprints on it. The minister has delivered a careful Budget that is focused on prioritising the repair of public services. The country has come a long way from the depths of the recession and the minister has stressed the importance of acting responsibly and implementing a prudent fiscal policy.

‘As a small open economy, Ireland is more exposed than other economies to external shocks outside our control. One thing that the government can do, however, is have a contingency in place to deal with such shocks. The minister has recognised this and is to be commended for his commitment to establish a contingency fund available to future governments to be deployed in a counter cyclical manner. Long term planning of this nature is to be welcomed.’