Taoiseach Enda Kenny has said the Government's biggest priority is to create new jobs and protect the most vulnerable members of society.
Mr Kenny’s 10-minute television address, which was transmitted this evening, addressed the challenges faced by Irish people in the Budget as well as the problems posed by the ongoing debt crisis in Europe.
The Taoiseach said that while steps had already been taken to aid economic recovery, further measures were needed in order to restore the country's finances.
"My Government is determined that now; the necessary decisions and changes are made to ensure that this is never allowed to happen again. Right now, our most important responsibility is to do what must be done to get our economy back on its feet," he said.
"The highest priority is to create more jobs, but we will also do all we can to protect the most vulnerable in our communities – our children, the sick, and the elderly".
"I wish I could tell you that the Budget won't impact on every citizen in need, but I can't," he added.
The Government is planning a €3.8 billion adjustment in the Budget as it tries to bridge an €18 billion hole in the public finances.
"Right now, the State is spending €16 billion a year more than it is taking in. This problem will not be fixed unless we take action to bridge this gap. This can only be done by us, ourselves. Working together. That means that in this Budget we must cut public spending by €2.2 billion and raise €1.6 billion in extra taxes," Mr Kenny said tonight.
The Taoiseach said this week's Budget would include a series of targeted measures specifically designed to create jobs and get people back to work.
These measures include a new system of loan guarantees will enable banks to resume lending and a new micro finance scheme which will help people to start their own businesses.
"We will reform how we run the country so that we never return to the practices that drove our economy into freefall - reckless spending, weak oversight of banks and reliance on a property boom for tax revenues," he said.
The Taoiseach said that while job creation was at the centre of the Government's plan, he was "painfully aware" that this would not happen quickly enough for those who are currently not working.
Nonetheless, Mr Kenny insisted that a start had been made towards creating more opportunities and renewing confidence.
"I want to make this the best small country in the world in which to do business, in which to raise a family and in which to grow old with dignity and respect," he said.
"I believe with all my heart, that we the Irish people can now make our way to recovery, to prosperity and to the fulfilment of the dreams of our children and the founding fathers of our nation," he added.
Sinn Féin president Gerry Adams described Mr Kenny's speech as a "prelude to a vicious Budget".
"Tonight's address by the Taoiseach was a missed opportunity. He failed to provide citizens with hope for a route out of the economic crisis. This was a clear attempt to justify in advance what is expected to be a vicious, unfair budget by the Fine Gael/Labour Government," said Mr Adams.
"Enda Kenny's tax plans will hit those on lowest incomes hardest. What is most striking about the Taoiseach's remarks is that there is no clear plan to stimulate the economy. The Taoiseach was long on rhetoric and short and substance," he added.
Elsewhere, a Red C opinion poll in today's Sunday Business Post newspaper showed a jump in support for Fianna Fáil ahead of the Budget.
The poll put Fianna Fáil on 18 per cent, a rise of four points on the previous poll in October. Fine Gael was up one per cent to 32 per cent with Labour dropping from 17 to 15 per cent. Support for Sinn Féin was also down one point to 15 per cent.
