Attempts to boost the economy and ensure Budget 2014 is the last tough economic adjustment will be paid for by hiking taxes on a range of savings and the banks.

Finance minister Michael Noonan announced details of a plan to give a tax break for those renovating their home and to extend another year of capital gains tax relief for those buying a house.

Employment was very much to the front of this budget with 27 references to jobs in his speech. But the job creation plans, which look at every sector from tourism, to building and agriculture, will come at a cost.

About €140 million is to be raise by raising the DIRT rate to 41% on bank deposits. And the “old reliables” – cigarettes, beer, spirits and wine – will also go up to raise a further €160m. There’s also a hit to those who have private medical insurance that will raise a further €127m. A levy on the banks will raise €150m.

All of this is the latest attempt to kick start this economy. Growth this year will be a pitiful 0.2%. The government’s forecasts for the economy next year at 2% look optimistic compared with estimates from the Central Bank and the IMF.

More austerity for next year's budget?

By hitting those who are already feeling the squeeze on their finances risks depressing domestic spending even more. The summer good weather has given a boost to spending but the VAT take this year is still shy of target, an indication that consumers are still nervous about any shocks to their household finances.

Politically, though, Minister Noonan’s hands have been tied by decisions to ease off on cuts to the budgets departments of health, education and social welfare.

The danger for the coalition government is that the economic recovery falters either due to domestic problems (the banks and the mortgage arrears crisis were noticeable mentioned very few times) or from an international economic shock. If that happened then Noonan will find himself facing yet another austerity budget for 2015.