The business community gave the Budget a broad welcome, expressing satisfaction with changes in Corporation Tax and PRSI, although some organisations accused the Finance Minister of not going far enough.
The employers' lobby group IBEC said in general the budget has underpinned Partnership 2000 and will help investment and employment and contribute to social inclusion.
"The reductions in the standard and the lower rates of Corporation Tax rate will stimulate further investment and employment as will the changes proposed in Capital Gains Tax (CGT) - ultimately the Exchequer will also benefit form lower taxes on business."
However, IBEC said it was disappointing that the Minister had been unable to eliminate borrowing completely in 1998.
Mr Brian Geoghegan said given the strong growth in the economy it would have been possible to aim for a balanced budget or even an overall surplus. He said the Minister would need to be very firm in the face of pay demands which are emerging. The IBEC affiliate, the Small Firms Association, said the Budget was a huge slap on the face for small business. "The Corporate Tax changes favour large business and a clear breach of Partnership 2000 to which SFA is a signatory."
The Irish Small and Medium Enterprises Association said there was nothing for the risk taker in business, except at the point of exit, "as evidenced in the significant reduction in capital gains tax from 40 per cent to 20 per cent.
"The association is dismayed that in spite of the Minister's commitment to fairness, he failed to restore the standard PAYE allowance to proprietary directors."
The Institute of Taxation has welcomed the broad thrust of Mr McCreevy's budget. Institute president Mr Rory Meehan said the Budget would be good both for business and the more marginalised members of society.
He added, however, that the Budget could have done more for low income earners and said individuals will still reach the new 46 per cent tax rate "at an unacceptably low level".
The Construction Industry Federation welcomed the Budget saying it should result in strong growth in the industry next year. It said the reductions in Corporation Tax should encourage expansion and investment.
However, the CIF's director general, Mr Liam Kelleher, said the organisation was surprised the capital gains reductions did not apply to development land.
He said this could cause a situation where development land would be held back and restrict supply in the next year.
Another IBEC affiliate, the Fashion and Footwear Federation, said it welcomed the announcement of a special tax break for long-term unemployed who return to work.
The Institute of Chartered Accountants said the Budget was a "good one, but not a great one".
The President of the Institute of Certified Public Accountants, Mr Pat McCrohan, said the reduction in Capital Gains Tax was the one exceptional measure in an otherwise uninspiring budget for Irish business.