The employers' organisation IBEC said today control of public expenditure must be the top priority for Government in the Budget.
In its pre-Budget submission published today, IBEC said the increase in current public spending is a serious threat to economic stability unless corrective action is taken.
IBEC urged the Government to peg spending to the rate of economic growth as the current rate of spending is unsustainable.
It called on Mr McCreevy to resist the temptation to raise taxes to balance the books and instead look for a greater return from spending.
The submission concedes there is room for spending rises in priority areas such as health but that these must be accommodated under a strict overall spending envelope. "Simply throwing more money at public service problem areas is not the answer," it said.
IBEC recommended that income tax bands and tax credits should be increased by the expected rate of inflation. Specifically there should be no increase in employer's or employee's PRSI, it advised.
IBEC said that growth of the past five years was exceptional and will not be revisited. This allowed current public spending to grow out of control in the past three years.
An analysis of the current economic situation concludes: "The heady days of the boom are over; it is time to bring the public finances back under strict control. Greater value-for-money must be obtained from each euro that is spent".