REACTION:The Budget has been welcomed by the employers' group Ibec as "responsible and prudent" but criticised by the country's largest trade union, Siptu.
Siptu said the Minister for Finance, Brian Cowen, "had promised very little in Budget 2008 and delivered accordingly".
Ibec director general Turlough O'Sullivan welcomed the Government's commitment to maintaining the delivery of the National Development Plan.
He said: "The right thing to do now is to maintain the delivery of the National Development Plan in its entirety and to substantially rein in day-to-day spending by Government. The Budget does this.
"The Irish economy is fundamentally sound. As it rebalances, it is especially important that businesses in Ireland can sell their goods and services overseas," Mr O'Sullivan said.
Ibec also praised the indexation of tax bands and allowances, investment in public transport, the commitment to improve productivity and flexibility, the encouragement for research and development, the investment in science, technology and education and energy efficiency measures.
Ibec said that it keenly awaited the establishment of a commission on taxation to conduct a fundamental review of the Irish tax system.
Siptu president Jack O'Connor criticised what he said was the failure of the Government "to seize the opportunity to invest in adult education, training and skills enhancement".
He acknowledged that the Government had met its commitment to further increase mortgage income tax relief, however, he said that the other income tax changes were "minimalist and did not even match the rate of inflation".
"Indeed with today's release of data showing that average industrial earnings last June came to €39,000 per annum, the Budget increase in the tax band to only €35,400 will have average earners well inside the top rate of tax," he said.
Mr O'Connor also expressed concern about the increase in the expenditure in health.
He said that this appeared "minimal in the extreme and is hardly consistent with the Government's commitment to the development of a comprehensive health service of the highest quality".