Taoiseach Enda Kenny said today the economy was improving but warned no one will be walking down the street feeling "like a millionaire" following the upcoming budget.

Speaking this morning, Mr Kenny said no decision had been made on the detail of the upcoming budget, but that the latest macro figures were “moving in the right direction”.

“When this budget is over nobody’s going to walk down the street and say I suddenly feel like a millionaire but what they will know is that the Government has continued...to strengthen that recovery, and by strengthening it we increase the opportunity for investment in jobs.”

Mr Kenny also said all departments were "fully entitled" to respond to the Minister for Public Expenditure Brendan Howlin before budget day, following the Department of Health's revelation yesterday that "draconian" measures would be required to deliver the level of spending cuts suggested in the Government's review of expenditure.

"We must continue to reform and keep our patience central to the health system," Mr Kenny told RTE's Morning Ireland. "Leo Varadkar as new Minister for Health will oversee that programme to get the best options and the best results both for a changed health system and better care and services for our patients."

The Taoiseach said the Government would continue to work towards Universal Health Insurance. He defended its progress on cutting hospital waiting lists.

Mr Kenny said he expected Mr Varadkar to implement free GP care for under-6s but declined to give a date.

“Under the current legislation the GP cards could be provided for over 70s and these are all parts of the process of moving towards Universal Health Insurance to where we want to be,” said Mr Kenny. “It is about accepting the need to change a structure that has not delivered in the way that we want for the people.”

The Taoiseach added that he expected Mr Varadkar to be “a very competent Minister for Health”.

Following First Minister Peter Robinson’s description of the Northern Executive as “no longer fit for purpose” and call for intensive St Andrews Agreement-type talks to try to break the political deadlock, the Taoiseach said he hoped the talks would take place very soon.

He also said he had asked Minister of State for the Diaspora Jimmy Deenihan to put together a paper on the constitutional convention's proposal of votes for emigrants.

“There are complications here. We worked on this 20 years ago, how far back do you go, who do you let in?” asked Mr Kenny. “I think there’s a real interest from the diaspora in this but there’s a difference between granting a right for presidential elections from general elections.”

Asked whether the Government would consider Philomema Lee’s request that adopted children would have the right to information about their birth parents, Mr Kenny said the Government was “concerned” about the issue.

“This quite a complex matter depending on the rights that both parents and children have, it’s not as simple as it sounds. I respect Philomena Lee, her story and for the publicity of this very sensitive issue and it’s one that we are concerned about and will look at.”