The Government is being told it needs to spell out and be clear about the cuts planned in this year's Budget and those up to 2014.
The Central Bank's latest quarterly forecast has also said wage restraint is necessary and that any hikes should be in line with our competitors.
It said growth in the economy overall this year will be slightly better than previously thought due to strong exports, with modest growth in 2011.
Employment will continue to drop slightly even next year, with only a small drop in unemployment in 2011.
The Central Bank said there is no sign of a double-dip recession or, even if one happens internationally, that it would happen in the domestic economy.
Assistant Director General Maurice McGuire said the Government needs to re-state the tough measures that lie ahead.