THE Fianna Fail leader predicted a negative public reaction to the Budget.

Mr Bertie Ahern said that people would look "with a cold eye on Government attempts to buy their votes with their own money". He said that while many of the provisions were welcome, they were no big deal.

"While we are glad that people are receiving some overdue tax reliefs that they have at long last wrung from this Government, the fact is that in this Budget and over the past two budgets they deserved much more.

"I can understand the satisfaction of trade unions and farmers at seeing commitments in the programme coming through. I do not begrudge my good friend and successor the Minister his day in the sun, but I have grave reservations about the economic strategy, or rather lack of it, in this Budget."

Resuming the Budget debate, Mr Ahern outlined his chief concerns:

. Projected borrowing of 1.5 per cent at a period of peak growth leaves too little headroom to meet the EMU requirements, when growth declines and when structural funds start drying up.

. The national debt under the Government's policies is scheduled to rise by another £2.2 billion by 1999.

. Even after the Budget, tax levied by the Coalition in its three budgets will have risen by over £2 billion, while day to day expenditure is up by £1.7 billion or 21 per cent.

. For single workers below the average industrial wage, and in most cases where both spouses are at work, even though one may be on a small income, the marginal rate of tax and PRSI remains a penal 55 per cent, much heavier than the tax levied on special savings accounts, deposit interest or capital gains.

. There is little incentive for the long term unemployed or for small business.

A huge opportunity was lost before the Budget by not containing expenditure, Mr Ahern said. "The Minister could have doubled what he gave back, or better, spread it more evenly over this year and the last two years, had he stuck to his own self imposed targets for expenditure, instead of exceeding them by £500 million. He could have been fiscally more responsible at the same time."

Mr Ahern said it was a "a full blown election Budget", but it had failed in its purpose.

"It is the Rainbow Coalition's 1997 manifesto, in which they try to appropriate the credit for all the good things which they inherited. While the voter is being liberally showered with confetti, much of it has little real or lasting substance.

"The Government parties make no secret whatever of the fact that they held back over the last two years, and especially in 1996, from giving much relief to the taxpayer, so that they could make the maximum impact in election year.

"The electoral cycle has taken precedence over the economic cycle in the most pronounced and obvious manner. I do not recall such blatant political cynicism, and the Government clearly hope to get away with it."