Fianna Fáil in government over the last two and a half years had taken the "very difficult decisions", Minister for Finance Brian Lenihan told a news conference at party election headquarters in Dublin today.
He accused Labour of "looking over its shoulder" at Sinn Fein and insisted, despite a denial by Fine Gael, that the party would increase Value-Added Tax if it got into government.
Defending the Government's record on the economy, Mr Lenihan said: "We have secured €20.5 billion of the €30 billion adjustment needed to bring our budget back close to balance."
He continued: "The latest data on our tax receipts, manufacturing output and unemployment show that a recovery is taking shape."
Mr Lenihan said: "The debate in this election should be about how we secure and consolidate that recovery, that's absolutely vital, and how we maintain the economy on a pathway of sustainable growth and job creation.
"But that is not what we have been hearing from the Opposition so far in this debate.
"My impression politically is that the Labour Party is looking over its shoulder all the time at Sinn Fein and it's afraid of being outbid in populist stakes and unreal economic policies.
"That has been very obvious from many media presentations by Labour Party spokespersons.
"The Fine Gael party, on the other hand, has adopted a different position. Essentially they are hiding behind the decisions we have already taken and in the meantime they are planning to stifle any chance of a recovery in the retail sector by clearly indicating in their Budget documentation published to date that they are promising a 1 per cent increase in Value-Added Tax in the Budget for next year."
Noting that this was denied by Fine Gael Front Bencher Leo Varadkar in a TV debate last night, Mr Lenihan said: "It may be revisable, it may be changed during the election campaign."
He said such an increase, "would have a very bad effect on the retail sector and doesn't, candidly, show much business or commercial judgment from a party that is putting itself forward as a a party of business and commercial judgment in this election".