Enda Kenny has said that any increase in taxes in next week's Budget would be the easy way out for the Government.
The Fine Gael leader was responding to today's ESRI report, which is calling for an increase in taxes to help stabilise the Budget deficit
In its latest quarterly commentary, the Institute said the recession will last until at least the end of next year, with unemployment expected to rise to 8%.
The report blames the economic decline on the drop in the housing market, and a fall off in consumption.
Mr Kenny said today that the Government must first deliver better value for money in public spending.