Taoiseach: We will keep our promises

The Taoiseach has said he will honour the commitments the coalition made in its Programme for Government.

Enda Kenny was commenting after speculation over the weekend that income tax may be increased and social welfare may be cut in December's budget.

The Government had promised not to touch these areas. Speaking to WLR in Waterford, the Taoiseach confirmed the Government would honour its election commitments.

"We're in a difficult situation economically (but) the Programme for Government hasn't changed and it is our intention to implement it," he said.

However, the Taoiseach was less clear on his stance on the Croke Park Agreement.

Transport Minister Leo Varadkar said earlier that he thought pay increments within the public sector should be deferred for a year.

Mr Varadkar added that pay rises could not be justified while cuts to services were being implemented.

Public sector unions hit out at the proposals, saying deferring increments would be in breach of the Croke Park Agreement.

This evening, Enda Kenny said the Ministers for Finance and Public Expenditure would put forward their proposals for December's budget in due course and he was not prepared to speculate on the details.