A multi-million pound childcare package, including tax breaks for the supply of creches and an increase of between £8 and £10 a month in child benefit, was announced by Mr McCreevy.
He announced a 100 per cent capital allowance in year one for the construction, refurbishment or conversion of premises for the provision of childcare. The relief will apply to all childcare facilities, including those provided by employers or commercial childcare operators.
He said childcare facility owners can use the relief as well as investors who intend to lease their premises.
The tax relief measure is expected to cost £900,000 (€1.14milion) next year.
Mr McCreevy also announced a £46.4 million package to finance an increase in the supply of smaller childcare facilities.
Some £20 million is to be injected into the Equal Opportunities Childcare Programme to fund grants for childcare providers caring for fewer than 20 children and to support local childcare network initiatives.
A further £5 million is to be provided to assist schools to set up and run after-school childcare services, while another u £5 million is to be provided for community-based groups to develop community out-of-school childcare services.
An additional £1.4 million is being allocated to health boards to enhance their inspection and advisory role.
Mr McCreevy said child benefit was to be increased by £8 a month for each of the first two children from £34.50 to £42.50 from September. For the third and subsequent children, benefit will be increased by £10 a month from £46 to £56 a month from September. These changes are to cost £35.3 million next year and £105.8 million in a full year.
The back to school clothing and footwear allowance will be increased in September by £20 to £63 for children between the ages of two and 11 and £78 for children between the ages of 12 and 17.
The Opposition last night criticised the childcare measures, saying they did not go far enough to cope with the crisis.
The Fine Gael finance spokesman, Mr Michael Noonan, said he was surprised that a Budget which was signalled as containing revolutionary proposals on childcare was so meagre.
"The increase in child benefit will be £8 per month for the first two children. This is an extremely low increase - it is only £2 per week. The basic pack of Pampers costs £7.99, so the Minister's £8 will enable the average family with one child to buy an extra pack of Pampers, Huggies or Comfies each month."
The Labour Party spokeswoman on children, Ms Roisin Shortall, described the tax and childcare provisions as "partial, piecemeal and anti-family".
"Families where one parent stays at home have been penalised, they have been told they don't deserve an equal share of the tiger economy. Once again childcare measures are driven solely by labour market concerns and ignore the needs of children and families."
The National Women's Council (NWCI) said the failure of the Government to deliver any support to parents to pay for childcare was disgraceful.
"The Minister is giving his tacit approval for forcing women to make precarious, unsuitable childcare arrangements because they cannot afford quality childcare" said a spokeswoman, Ms Grainne Healy.
"While the NWCI welcomes the supply measures, the Minister has failed to establish a national childcare framework to manage and co-ordinate the supply. This will further lead to fragmentation in the delivery of childcare provision."