REACTION: The Budget had delivered real benefits to those who needed it most and would ensure that the economy remained the fastest-growing in Europe, the Tanaiste said last night.

Ms Harney said the Budget ensured "prudent management" of the public finances, while looking after the most vulnerable in society at the same time.

"The Progressive Democrats are honouring their promises to this country's workers, pensioners and parents." she said.

The Tanaiste said this year's increase of €10 in the old age pension brought the weekly payment to €157. "With this measure we have taken the first significant step towards our pension target of €200 per week within the lifetime of this Government."

The Coalition Government had pledged during the election campaign to keep taxes down in order to keep unemployment up. This Budget ensured that the reductions in income-tax rates of the last five years were secure.

"We have reaffirmed our commitment to workers by keeping PAYE tax down. By keeping taxes low on work, we encourage investment, employment and job creation," she added.

Ms Harney said this simple approach had transformed the country, by ending emigration and large-scale unemployment and reducing poverty.

The Tanaiste stressed that investment in infrastructure was vital to future success. The commitment in the Budget to a further €209 million for the national roads programme would ensure further significant progress was made in 2003 on the development of a modern network.

"Budget 2003 represents a prudent, responsible and fair approach to the public finances and will provide a solid platform for prosperity into the future," she said.