The Minister for Finance has said Budget 2003 will "provide the foundation for future growth" in the State over the next three years.
The Budget, Mr McCreevy told the Dáil, has three key objectives: protecting the weaker sections of society, investing in the future, and securing stable public finances to safeguard the gains we have already made.
But, announcing the sixth Budget of his career he warned: "Today's Budget has been framed in very different circumstances from those of previous years."This was borne out with improvements in tax credits running below the rate of inflation, meaning a net loss for PAYE workers.
Mr McCreevy said employment was expected to grow by 11,000 but announced a cap in staff levels in public service with immediate effect and a reduction of 5,000 public sector employees over the next three years.
Child benefit will increase by €8 a month for the first two children and by €10 for subsequent children. The family income supplement threshold will rise by €17 and the old age pension will go up €10 to €157.30 per week.
Stamp duty on credit cards will double from €19 to €40, stamp duty on Laser and ATM cards will rise to €10. The lower rate of VAT will increase from 12.5 per cent to 13.5 per cent.
Spending on roads is to increase by €209 million to €1.25 billion, Mr McCreevy said.
Cigarettes escaped lightly with an in crease of only 50 cent on a packet of 20. The price of spirits is to go up 20 cent a shot and "alcopops" will rise in price by 35 cents. The price of a pint remains unchanged.
In a concession to house-buyers, Mr McCreevy announced an increase of annual mortgage relief for first time buyers to €4,000 for a single person and to €8,000 for a couple.
There have been no changes to income tax levels, as expected. Mr McCreevy also announced the Government would honour the first phased payment of Benchmarking. The SSIA scheme will also remain in place as it is at present.
The Budget has been described by the Tánaiste as prudent, but Opposition parties have rounded on the Government.
"It has betrayed everything that was promised," Fine Gael spokesman on finance Mr Richard Bruton said.
Labour said the Budget was "mean spirited and socially irressponsible".
But the Minister told the Dáil: "Today's Budget has been planned within a three-year framework.
"In the 1970s and 1980s our country ended up in an unsustainable situation because of the wrong budgetary policies.
"Governments refused to respond to challenges as they arose. They chose short-term solutions which caused long-term problems.
"This Government will not make the same mistake."
"This is a Budget which will protect our long-term future and secure the welfare of all sections of our society," Mr McCreevy concluded.