The Taoiseach Enda Kenny has again warned the budget next month will be prudent.

Mr Kenny says the €1bn available for spending increases and tax cuts will be prioritised to deliver for hard pressed working families.

He told the Seanad the budget will 'ready us for the future'.

And he says the government will be taking a very responsible approach to the public finances.

He says the minority government will not put the gains we have made at risk.

While the Finance Minister Michael Noonan says people should not believe everything they read in the newspapers, about the budget or his health.