With just three weeks to go until Budget Day, the question of tax relief hangs over this morning’s Cabinet meeting.
Yesterday, the Fiscal Advisory Council warned the Government should stick to plans for €2bn worth of adjustments despite the strengthening economic recovery.
A number of Ministers say they want to relieve the burden on low and middle income families, but no agreement has been made on how that will be achieved.
The Financial Times yesterday singled Ireland out among its European peers for its economic momentum.
However, the independent watchdog IFAC said the recovery should not be thrown into doubt by cutting tax rates or increasing spending.
It wants €2bn in adjustments next year, a figure the Finance Minister Michael Noonan had been moving away from in recent months.
More advice will be coming today from the Irish Tax Institute, which is launching its own Budget submissions later.
A number of Ministers say any changes must benefit low and middle income families.
The question now is whether the Government is any closer to agreeing on what sort of measures would achieve that aim - whether it be changes to the top or flat rate, tax credit increases or a blend of the two.