Fine Gael has published its pre-Budget plan, which says the party will limit income tax increases to half the levels proposed by the Government over the next four years.
The party says it will stick to the target of bringing the budget deficit into line with EU targets and making €15 billion worth of tax and spending measures over four years.
Labour has also published its pre-Budget proposals, saying that a €6 billion adjustment in 2011 poses 'an unacceptable risk to jobs and growth in Ireland'.
The party says it would bring in €5 billion of tax and spending measures, but put €500m back into job creation plans, giving a net figure of €4.5 billion.
Labour favours a third income tax rate of 48% for single incomes above €100,000. It also favours an increase in DIRT and a new, tiered system for capital taxes.
Read the Fine Gael plan here
Read the Labour proposals here
Fine Gael leader Enda Kenny said his party's plan would create 100,000 new jobs, and described it as 'a better, fairer way' than the Government's proposals. He also said the party would cut the number of national politicians by 35%, and close FÁS and the HSE.
The party's plan includes what it calls 'radical public sector reform', including 18,000 more voluntary redundancies than the Government is proposing. Fine Gael also says it would reverse the minimum wage cut, protect pensions and take a different approach to property tax.
Instead of an annual recurring tax on property, the party wants to increase the second home tax and bring in a 'low' capital gains tax on the site values of primary homes.
Fine Gael finance spokesman Michael Noonan said the party's plan for jobs would include a one-off €10m marketing budget for State agencies, aimed at restoring Ireland's reputation worldwide, scrapping the €10 travel tax, abolishing the lower 8.5% rate of employers' PRSI of workers earning below €356 a week and increasing DIRT to 30% to encourage more household spending.
Labour plans €190,000 public salary cap
Labour is proposing to set up a special jobs fund to finance a series of initiatives. The fund would be administered by a cabinet sub-committee and would look at proposals from Government departments, State agencies and other bodies, including the private sector.
It also plans to set up a Strategic Investment Bank (SIB), using €2 billion from the National Pension Reserve Fund as capital. This would be run as an independent commercial operation.
Labour is proposing an alternative approach to public spending through a Comprehensive Spending Review (CSR), which would be undertaken every three years. The party also wants an independent Fiscal Advisory Council (FAC), separated from budgetary decision-makers in government, which would scrutinise all official budgetary projections.
The party's plan proposes a cap on all public sector and political salaries at €190,000, including the Taoiseach. It opposes a cut in the minimum wage, saying it favours a negotiated wage freeze for three years. Labour says it would establish a temporary Fees Commission to investigate and control professional fees. The Commission would have the power to recommend the use of maximum prices orders for some areas such as doctors' fees.
Early Budget legislation in Dáil expected
Meanwhile, legislation to introduce some of the measures announced in the Budget is likely to be introduced in the Dáil next week.
Opposition parties have been told to expect a Financial Emergency Measures Bill to be taken on Thursday and Friday.
This would allow the Government to introduce changes from the start of next year, rather than waiting for the passing of the Finance Bill, which is expected in February.
