The Taoiseach, Bertie Ahern, has claimed yesterday's budget was proof the Government was working to help the less well off in Irish society.
Minister for Finance Brian Cowen's first budget took all minimum wage earners out of the tax net, while also increasing tax credits and the standard-rate tax band and modifying nine of the so-called "savage 16" cutbacks introduced last year.
There were also increases in social welfare payments and a €900m package for the disability sector over the next three years, as well as measures to help first-time house buyers.
Observers had been predicting such measures as part of Fianna Fáil's efforts to reposition itself following its poor showing in the local and European elections earlier this year.
Speaking after the budget speech, Mr Ahern said it delivered real additional income for the less-well off, including pensioners, the unemployed, single parents, people with disabilities and many others relying on state supports.