The Government has decided to introduce next year's Budget six weeks early.

Budget day will now be 14 October in response to the economic challenges facing the State's finances.

Minister for Finance Brian Lenihan said he would use the early Budget to set out the steps he proposes to stabilise and restore balance to the public finances.

He said this would include prioritising current and capital spending to reflect 'the changed realities'.

The Minister for Justice later denied that the Government has been panicked into announcing an early Budget.

Dermot Ahern said the CSO figures released yesterday indicated a rapid turnaround which he said had to be dealt with.

The Minister stressed the Government had a job to do and must react to all situations.

He also expressed his hope that the Opposition would react to the development in a positive and constructive way.

No Govt plan for crisis: Opposition

The Government says the move would indicate changes to spending plans in the light of expected tax revenues, and would give 'clarity and confidence to investors and taxpayers alike'.

Capital spending will be prioritised within the National Development Plan 'to boost confidence in the underlying strength of the economy, to protect the environment and to build sustainable competitiveness in the economy as a whole.'

Opposition parties have said the Government's decision showed that it realises the extent of the crisis, but it claimed there was no indication that there was a coherent plan to deal with it.

Fine Gael Finance Spokesman Richard Bruton said the announcement is about filling a publicity cycle and is not based on a clear strategy. Mr Bruton said that without such a strategy the public are likely to face emergency tax measures in October.

The Labour Party's Joan Burton said the Dáil must be recalled next week for an on-the-record debate on the nation's finances.

Ms Burton called for a National Recovery Programme to set out a road map for recovery, including commitments to essential long-term investment in infrastructure.

Arthur Morgan of Sinn Féin claimed the Government is out of their depth and said cutbacks in public spending which undermine frontline services will not be tolerated.

