Fianna Fáil finance spokesperson Michael McGrath has said that his party has made substantial progress on housing and health in talks with the Government.

He said that his party will have achieved progress on these priorities when the Budget is announced tomorrow.

The latest indications tonight are that there will not be any increase in carbon taxes.

There will also be no hike in excise duty on diesel.

Also, there will be no increase in the taxes on alcohol.

An additional €150 million is set to be allocated for roads nationally.

Earlier, the party said it would hold further meetings with Minister for Finance Paschal Donohoe this evening.

The party's public expenditure spokesperson, Barry Cowen, said progress still had to be made around a funding increase for the National Treatment Purchase Fund and for primary school capitation grants.

He said the party would "not rest easy" until these two items were delivered in the Budget.

Mr McGrath said the Budget has to prioritise health and housing, two areas where he said the Government had failed.

Independent Alliance Minister Shane Ross has said he hopes there will be a breakthrough in the Budget talks which would result in an increase in the threshold that people pay tax on inheritances and gifts from their parents.

The threshold currently stands at €310,000 but Mr Ross wants it increased.

There is a commitment in the Programme for Government that the Government will work towards raising it to €500,000.

Talks are continuing between the Independent Alliance and Minister Donohoe.

Earlier, People Before Profit proposed spending an additional €2.9 billion to build social and affordable homes next year as part of its pre-Budget submission.

The party also wants to make all public transport free, which it says would cost €580 million annually and help reduce both CO2 emissions and traffic congestion.

Under its plan the party says that €3bn could be allocated to develop a National Health Care System that would include free GP care.

The party believes the Universal Social Charge and the Local Property Tax should be scrapped.

This could be done by the closing off of loopholes around corporation tax, a levy on the pharmaceutical industry and by introducing a wealth tax on millionaire households.

In total the party's alternative budget would raise €15.5bn through 13 revenue raising measures.


Read more: What we know about Budget 2019
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Meanwhile, three Fine Gael backbenchers have accused the Opposition of unsustainable promises in their proposals for Budget 2019. 

Peter Burke said he was alarmed at the tax, borrowing and spending plans of the Opposition parties. He said all of their plans would increase the borrowing of the state. 

Kate O'Connell said the promises were unsustainable, while her party colleague Colm Brophy denied this year's Budget was an election budget.

Additional reporting: Martina Fitzgerald