Minister for Finance Michael Noonan has said the reports about possible cuts to child benefit or to the main social welfare rates are speculation and that the Government had not made those decisions yet on the Budget.
He said the only hard decision was the one he proposed himself, which was to increase the higher VAT rate from 21% to 23%.
The Minister said this was to be done anyway next year as part of Ireland's agreement with Europe and he was bringing it forward to this year.
He said the Budget was about choices and he is recommending to Government that there be no increases in income tax bands or credits.
Government sources have said there will be no reduction in basic unemployment payments in next month's Budget.
Mr Noonan said they had to rebalance the books and get further income from indirect taxation.
He said in the 2007 Budget, 29% of tax was income tax and that had risen to 40% by last year, whereas indirect taxation income had fallen from 31% to 29%, and this needed to be rebalanced.
The Minister said the Budget in a fortnight's time would be pro-jobs and pro-growth and fair across all sections of society.
Minister for Social Protection Joan Burton said no final decisions have been made in relation to child benefit.
Ms Burton seemed to rule out taxing the benefit, saying there would be a whole series of difficulties, including IT problems.
Asked to clarify if all social welfare rates are being looked at, the Minister said everything is up for discussion.
Alarm over €10 child benefit cut report
Family support groups have expressed alarm at the prospect of child benefit being cut by €10 in the Budget.
The National Women's Council said the payment had become an easy target for successive governments and that any reduction would lead to further hardship for families.
Early Childhood Ireland, which represents pre-schools and day-care services, said such a proposal would hit the poorest families hardest.
The Children's Rights Alliance has said low income families would have to be compensated in the event of a cut.
Minister for Trade & Development Jan O'Sullivan said no decision has been taken yet in respect of cutting child benefit in the Budget.
Speaking on RTÉ's The Week in Politics, she said basic social welfare rates would be maintained, but child benefit is not one of the core, basic income social welfare rates.
