At the end of July, the Irish authorities predicted that whole year tax receipts would fall below budget estimates by around EUR3bn.

However, the new figures have suggested that the shortfall is likely to be far more substantial, in the region of EUR5bn. Declining VAT revenues as a result of weaker consumer spending, and lower capital gains tax revenue, due to the ailing property market are thought to be contributing to the budget shortfall.

Unsurprisingly, the opposition parties seized on the news, with Fine Gael Deputy Leader and Finance Spokesman, Richard Bruton arguing that:

"The Government has finally woken up to the scale of the crisis facing the economy. This week's Exchequer figures and the unprecedented rise in the live register has prompted a belated response from Fianna Fáil. But the government has squandered valuable time and sabotaged Ireland's ability to weather the economic downturn."

He continued: "Even still, we will wait a further six weeks before we see any concrete proposals. The fear remains that this announcement is about filling a publicity cycle and is not based on a clear strategy. It remains to be seen whether this crisis Budget is about tax increases for families and businesses in the short-term and cuts in frontline services early next January."

And concluded: "We can only hope that the government has a clear plan of action to rescue the economy, and is not hoping for a flash of inspiration between now and the Budget. Without a definite strategy, Fianna Fáil is likely to foist emergency tax measures on the public come October. Many of these will be stealth taxes which will hit the vulnerable members of society the hardest."