The Government must deliver on the National Development Plan (NDP) and Transport 21 to ensure growth, Small Firms' Association (SFA) director Patricia Callan said yesterday.

In the association's winter economic statement, Ms Callan said small firms are prepared for the challenges of a slowing economy, but argued that the Government had to provide the economic and regulatory environments that encourage businesses.

"This requires continued investment on the capital expenditure side to ensure the delivery of the NDP and Transport 21 priorities, even if this necessitates borrowing by the Government," she said.

"Balancing budgets may be perceived as prudent economic management, but any business-person knows that if the return on investment arising from borrowed income is greater than the repayments, then it is worth doing."

She warned against talking the economy down, and said that despite some predictions, both manufacturing output and exports are up this year, while a further 78,000 jobs have been created in the Republic.