The Budget is "prudent", "caring and equitable" and in keeping with the Government's "radical social philosophy", the Taoiseach told the Dβil.

Against Opposition criticism, Mr Ahern vigorously defended the Budget and the decision by the Minister for Finance, Mr McCreevy, to use the Social Insurance Fund. Fine Gael claimed it was "funny money" and Labour said the distorted payments schedule for social welfare increases was a "blatant attempt to buy the votes of the electorate".

In a debate which continues today, Mr Ahern said, "given the slowdown in the world economy, this Budget is a fine achievement".

Mr McCreevy had very properly "marshalled available resources to avoid a plunge into borrowing at this stage, before we have any real idea of how long the economic slowdown is going to last".

The prudence and "margin of safety" created over the years had paid off, Mr Ahern went on. "If this is not a rainy day, I am not sure what is. I find it laughable that the Labour Party, whose spokesperson has been urging us to raid the pension fund all year, becomes all concerned that we are using the surplus in the Social Insurance Fund to part-fund increased social benefits."

There was "nothing untoward" in this and "there is no question of contributors' benefits being put in doubt". Mr Ahern said it was a "bit hard" to listen to a lecture from a former minister for finance, Mr Alan Dukes, who despite his best efforts never succeeded in the 1980s in phasing out the budget deficit, or getting anywhere near it.

Mr Dukes said he believed the Budget would "unravel very quickly" as last year's had "ended in tatters" and the Government tried to pin the blame on external factors. He said the Minister would not borrow money but would "steal" it.

"Raiding the Social Insurance Fund for the purpose of supporting general expenditure is a con job. It is a funny-money operation which I hope will not become a standard element of Fianna Fβil and Progressive Democrats fiscal management. The first "funny-money operation is the raiding of the Social Insurance Fund for €635 million and the second is the raiding of the Central Bank."

There were other funny-money transactions such as the "hijacking" of €792 million of corporation profits tax income on a once-off basis, Mr Dukes said.

The Labour leader, Mr Ruair∅ Quinn, said the Minister for Finance had won the "Booker prize for fiction". He had "never seen such a blatant attempt to buy the votes of the electorate".

What had occurred with social welfare payments was a "deliberate distortion of the budgetary calendar to ensure a drip-feed of backdate money is paid in lump sums close to the probable date of a general election", he said.

The Minister had "cooked the books" and "he may not have to deal with the harsh reality of a deficit but he has made certain that his successor will".

Mr McCreevy had deserving and non-deserving taxpayers and the "high flyers and well off are the most deserving recipients of the largesse he has distributed".

The "losers are those on low pay, on the minimum wage".