The Tánaiste has defended the Government decision to pull back on the budget cutbacks against the advice form a leading economic think-tank.

A €2.5 billion correction will now take place rather than the planned €3.1 billion.

That's despite the ESRI saying just this morning that the full €3.1 billion correction should take place.

The institute says one more tough budget is better than dragging out the austerity over two more years.

Eamon Gilmore says that while the decreased budget represents an easing up of cuts and taxes, it will still be hard on people:

Budget 2014 will be announced next Tuesday.