Next week's Budget will see changes aimed at getting Ireland back on the path to having 'safe' national finances again, the Finance Minister has said.
Paschal Donohoe has said it's vital to get the balance right between the country's long-term financial standing and providing the necessary supports for those out of work.
Budget 2021 will be unveiled next Tuesday.
It comes in the wake of unprecedented Government spending on health and social welfare as a result of the pandemic.
While the country is in recession, Minister Donohoe told Newstalk Breakfast that the significant difference between this and the last economic collapse is that spending isn't being cut.
He said: "We are making expenditure commitments, but we are doing that via the Government at precisely the point that private sector employment, demand and income has collapsed.
"We are stepping in for a limited period of time... what you will see in the Budget is a very targeted change in the level of borrowing for next year, to get us on the path to how we can have national finances that are safe again.
He said the last four or five budgets have seen a focus on ensuring Ireland's credit-worthiness was restored.
He explained: "I can assure you I won’t do anything to jeopardise that again, but I have to get the balance right in responding back to the issue that we still have over 200,000 that don’t have a job today that were in a job in March."
Amid calls for the pandemic unemployment payment to be restored to previous levels, Minister Donohoe said managing finances and reducing borrowing is the 'very reason' why there have been cuts to the rate.
