Small business group ISME has urged the Government not to go beyond €3.6 billion worth of measures in the Budget, warning that this would only affect the economy's future growth potential.
In its pre-Budget submission, the group urges the Government to tackle the deficit through cuts in the public sector and social welfare spending, rather than new taxes.
ISME also calls for the introduction of a new state bank, similar to the former ICC, which would focus on lending to businesses.
It urges tax incentives for home-owners who use tax compliant trades people to carry out work.
On jobs, ISME wants a financial subsidy for employers taking on unemployed workers and a reduction in the top rate of employers' PRSI to 8.5%.
It calls for a reduction of 35,000 in the public sector workforce over the next two years, and the outsourcing of some services to the private sector.
