Taoiseach Leo Varadkar has said next Tuesday's Budget is not an election budget, rather it is in line with the Government's budgetary strategy over the last few years.

He said the strategy is aiming to eliminate the deficit; to reverse cuts to pensions and welfare, and ease the burden of income tax.

The Taoiseach was speaking as he arrived for the Fine Gael annual presidential dinner in Dublin tonight.

Mr Varadkar said the Government has decided the Budget will be a balanced budget next year, which means for the first time in 10 years, the money they take in in tax will be equal to what they spend. 

He said that one of the reasons they will have a balanced budget is that they have a slight concern that maybe they've been doing better in taking taxes from company profits than will be the case in the future.

He said they want to be careful not to repeat the mistakes of the past and over-rely on a particular tax.

He said the Budget will be Brexit-proofed and the State will have the capacity to borrow if the need arises due to Brexit.

On tax-raising measures, he said there will be some but they have not been finalised yet, and they will be used to pay for a reduction in income tax and the USC, and also to pay for a pension and welfare package. 

Asked directly about the 9% VAT rate for the hospitality sector, Mr Varadkar told journanists they would have to wait until Tuesday.

Separately, Mr Varadkar said he is hopeful that there will be decisive progress in the next two weeks to conclude a Brexit deal but that there is still more work to be done.

"There will be a summit in two weeks that will be a time for us to take stock. I would be hopeful at that point that there would be decisive progress allowing us to conclude an agreement by November," Mr Varadkar told reporters after EU negotiators expressed increased optimism in recent days.

"That remains to be seen yet. I think there is a fair bit of work to be done. It's increasingly important that we conclude a deal sooner rather than later."

Additional reporting: Sharon Tobin and Reuters