A think tank has taken issue with the Government's policy of devoting two thirds of the fiscal space in the Budget to spending increases and one third to tax cuts. 

Hibernia Forum, which adopts a right of centre approach, said taxpayers took the burden of austerity since 2011. 

An analysis written for the group by finance lecturer Cormac Lucey said the Government should favour tax cuts over spending increases in the Budget on October 11.  

"The central reality is that while the real economy and revenues under most tax headings are struggling to recover to their 2007 highs, revenue from income tax and the universal social charge is expected this year to equal 140% of its 2007 level," the group said it its pre-budget submission.