The Minister for Finance Jack Chambers has said there should be further revisions in inheritance tax in future years.
The ceiling on a son or daughter inheriting tax free was increased from €335,000 to €400,000 in yesterday's Budget.
Speaking on Today with Claire Byrne, the Minister said he would support revisions in future years.
He also described some of the existing rates for grandchildren and nieces and nephews as "quite penal."
Both he and Minister for Public Expenditure Paschal Donohoe defended their decision not to cut the VAT rate for the hospitality sector.
Minister Donohoe said the Government could not introduce a third rate of VAT for the sector.
Minister Chambers also defended his Budget from criticism from the Irish Fiscal Advisory Council which said the package risked repeating the "mistakes of the past".
He said the Government had established two funds which would have put aside €10 billion by this year and €16 billion by next year.
"We will continue to put a significant proportion of (tax) receipts aside to plan for the long term," he added.
Kieran McQuinn, a research professor with the Economic and Social Research Institute, said Budget 2025 contained a substantial commitment to investment, which could be "game changing for the economy."
"Both in terms of the short run over the next year, but also over the medium term, and I think this is potentially quite game-changing as far as the Irish economy is concerned," he said.
Investment in the Irish economy across the last ten to 15 years has varied substantially, but now there is an opportunity for investment on a more "sustainable basis", he said.
Speaking on RTÉ's News at One, he said housing targets are being formulated "as we speak" and will come out when ready.
But, he added there was a significant increase in the capital investment programme under Budget 2025.
Professor McQuinn agreed there were capacity constraints but noted there were significant numbers working in the construction sector.
"I think a certain element of the challenge will be a reallocation of resources within the construction sector, and I think when the funds are coming on stream that will improve the attractiveness of residential construction over other forms of construction," he stated.
However, he said people would have to get creative and potentially source workers from abroad.
"If the funding is there, I think those kinds of capacity issues can be dealt with," he said.
He said he also welcomed the introduction of the residential-zoned land tax.
Meanwhile, the Dáil has voted through elements of Budget 2025.
These include excise on tobacco products and changes to value added tax, capital acquisitions tax and stamp duty.
Each came into force at midnight.
Yesterday the Minister for Finance Jack Chambers announced a multi-billion euro Budget to the Dáil, saying the package of measures will "foster a real sense of hope for the future."
A double welfare payment later this month, two double child benefit payments before Christmas and reductions to the Universal Social Charge were among the measures that have been announced.
Budget 2025 measures included a €12 increase in weekly social welfare payments, including the pension, and a double payment will be made in both October and December.
Every household will receive two energy credits of €125 each - one at the end of this year and another at the start of next year .
The minimum wage will increase by 80 cent from January the first, rising to €13.50 an hour, while there will be two double child benefit payments made in November and December, and a baby boost payment of €420 for new parents.
On taxation, the entry point for the 40% top rate of tax has increased by €2,000 to €44,000.
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The Universal Social Charge has been cut, with the entry rate for the 3% rate rising.
In the politically contentious area of housing, the renters tax credit will increase to 1,000, the Help to Buy scheme has been extended to 2029 and the mortgage interest relief extended for another year.
The "land hoarding tax", which was the source of disagreement between coalition parties will go ahead, but those who are using land for genuine economic reasons will be exempt.
A new mansion tax will see stamp duty rise from 2% to 6% on the value of a residential property above €1.5m.
In what was his first Budget, Jack Chambers said it has its common good at the core and it will deliver a fairer society.
