Finance Minister Michael Noonan has said that next month's Budget will "prudently encourage" more growth in the economy.
Hiscomments come after the Fiscal Advisory Council this week warned the Government that "considerable work" is still needed to fix the public finances and it should go ahead with €2bn in cuts in the Budget,
Minister Noonan denied that there is a two-tier recovery happening in Ireland - but admitted that rural towns cannot rely solely on multinationals for growth.
"Now on the run-in to the election, 18 months away, we don't need further tax increases, we don't need further expenditure cuts,"
"It's time to prudently encourage more growth in the economy and to the conscious that the economy isn't any one sector, that it's all sectors interlocking - it's construction, it's retail, it's farming, it's tourism, it's foreign direct investment."