Political reaction: PD backbencher Liz O'Donnell claimed the Budget brought to fruition many of the ideals championed by her party in government.

She said the Progressive Democrats' pursuit of low tax, fair tax and social justice was reflected in many of the measures introduced. They particularly welcomed the €787 million childcare package which would help ease the financial burden on parents of young children by creating 50,000 additional places.

"Families will welcome the news that the rate of child benefit will increase to €150 per month for first and second children and to €185 for subsequent children, as well as a phased increase in paid maternity leave entitlement from 18 weeks to 26."

Fine Gael spokesman on equality, social and family affairs David Stanton said promises to tackle child poverty and the problems facing lone parents were no more than public relations exercises.

"It will not only be hungry children who have been let down today. The Minister has also made numerous promises to lone parents. Today's announcements will do nothing extra for the thousands of lone parents who would like to go back to education or work. It will also do nothing for the thousands of lone parents who are in housing need."

Labour health spokeswoman Liz McManus said the chronic problems facing the health service were virtually ignored.

"Nobody currently enduring a lengthy wait for treatment on a hospital waiting list; nobody who is still waiting for the benefits of the long-promised extra medical cards; or none of those who currently find themselves languishing on a hospital trolley due to bed shortages will have their plight eased by today's Budget."

Green Party leader Trevor Sargent claimed the Minister's announcement of the establishment of a national carbon fund was "simply buying our way out of our Kyoto commitments at the taxpayers' expense to the tune of €20 million in 2006 alone".

Catherine Murphy (Independent, Kildare North) said while the childcare measures were welcome, the overall package failed to tackle the financial strains experienced by the majority of parents and childcare providers.

She criticised the fact that no provision was made for children over five years or for the victims of child poverty.

Fine Gael's justice spokesman, Jim O'Keeffe, said the Budget made no provision for the promised 2,000 extra gardaí.