REACTION: The Green Party spokesman on finance, Mr Dan Boyle, accused the Minister of introducing taxation by stealth.

"No increase in personal tax credits or in tax bands means that income tax increases by least the rate of inflation."

Mr Boyle added that the Minister had indulged in "further smoke and mirrors" with the pretence that tax loopholes were being closed, when, in fact, they were all to continue for a further two years.

"Home-buyers, once again, are the victims of this deception. The pathetic response on mortgage interest relief is more than eaten away by the proposed VAT increase. This and other increases in indirect taxation will mean that Ireland's inflation rate is now heading towards three times the EU average."

Mr Boyle said his party was, once again, disappointed that the idea of carbon tax had been kicked into touch.

The emphasis on capital infrastructure showed a Government and a Minister prepared to engage in a dangerous reliance on public-private partnerships.

"The promotion of the new roads programme is a very wrong emphasis, especially when contrasted with the continuing freeze of the development of far more important public transport infrastructure."

The social welfare increases were "derisory and insulting" coming from a Minister and Government who dared to talk about trying to bring equity to society, he added.

"In talking about a three-year budgetary strategy, the Minister is addressing his future all too confidently. The reality is that this Minister has already presented six Budgets too many."