Wednesday's budget will include extra money for parents of pre-school children, significant increases in welfare rates and a possible restriction of the use of tax reliefs by the wealthy, as the Government seeks to regain public support before an expected 2007 general election.
Minister for Finance Brian Cowen will outline his measures in the Dáil on Wednesday in what he hopes will be the second of three Budgets for him.
With the Taoiseach insisting last Friday night that there would be no general election until 2007, Ministers hope to use this year's Budget and another in December 2006 to convince voters they deserve a third term in government.
Speculation continues to centre on the package of childcare measures to be announced on Wednesday. There is widespread expectation that Mr Cowen will announce a special payment to parents towards the cost of caring for pre-school children.
Some Ministers are concerned that expectations on childcare have been raised too high.
Mr Cowen is expected to announce a programme of measures to be implemented over three years, with the result that parents may not notice a dramatic change in year one.
To counter the fear that the package may be an anticlimax, there is speculation that Mr Cowen may opt to give substantial resources to one aspect of his package in year one - such as increasing child benefit or introducing the new payment - to ensure the announcement has a noticeable impact on the finances of parents.
Measures to tackle child poverty, along with increases in basic welfare rates, pensions and the carer's respite grant are also expected in a Budget day welfare package worth in the region of €1 billion. This is on top of the €12.5 billion allocated in the Government's spending Estimates.
The measures will form part of what Minister for Social Affairs Séamus Brennan has described as a "social policy reform agenda".
There is likely to be provision for non-contributory pensioners to earn up to €50 a week, instead of €7.60 a week at present. Child poverty measures, such as increases in the family income supplement and the child dependent allowance, are also expected. For lone parents, obstacles to education, training and employment are expected to be addressed.
An increase of about €3 a week in the fuel allowance, bringing it up to between €12 and €15, is also being signalled.
Mr Cowen is expected to increase the standard rate tax band to ensure fewer people pay tax at the higher rate. There is speculation, too, that he may move to index link this band to prevent the phenomenon where normal inflation-related wage increases push modest earners into the higher tax band.
There will also be some measures to address the situation where some high earners can avail of tax reliefs to reduce their tax liability to zero.