The Tánaiste Frances Fitzgerald has defended Budget 2017 as “prudent” and “careful”.

It follows concerns raised by the head of the Irish Fiscal Advisory Council over the increase in spending outlined yesterday.

Professor John McHale warned the total amount could mean we are in breach of EU rules.

However Ms Fitzgerald says she is not worried.

She said: “But in fact the Department of Finance is quite confident that we are within the rules, there had been some technical adjustments in ther last period and those relate to inflation and other issues.

“So, I am confident that we are within all the parameters that we should be and that we are continuing the process of careful management of the public finances.”