The government is now predicting the economy will grow by 4.5% this year well up on the most recent estimates just last week of growth of 3%.

The news comes after the Central Statistics Office (CSO) published figures for the second quarter showing GDP up 7.7% since the same time last year, and GNP up 9% year on year.

The Finance Minister Michael Noonan has confirmed the figures mean we can have a neutral budget next month, but he has warned against any clamour for giveaways.

Mr Noonan says the coalition will proceed with caution.

Newstalk's business editor Ian Guider has told Lunchtime that some estimates put growth as high as 6%.

While chief economist at the Institute of International and European Affairs, Dan O'Brien, told Newstalk Lunchtime that all this gives the government scope for the first non austerity budget in almost a decade.