Director of Retail Ireland Torlach Denihan said the Brian Lenihan must make the bulk of the 2009 adjustment to the public finances on the expenditure side of the equation.
Mr Denihan said that while revenue raising measures are necessary, it is essential that too much money is not taken out of the economy in taxation or consumer spending will collapse.
Mr Denihan said retail sales fell by the largest annual drop ever recorded last year and the trend has continued into 2009.
He also predicts that 25,000 more retail staff will go on the live register this year.
