Finance Minister Brian Lenihan has signalled that next month's Budget will see low-paid workers currently outside the tax net asked to make some contribution.

Speaking in the Dáil during today's pre-Budget debate, Mr Lenihan reiterated that the necessary €4bn in savings had to come from spending cuts rather than tax hikes.

However he suggested that the situation of having so many workers not paying tax at all could not continue.

“While they may have some exposure to the income levy, having 50% of the earners out of the tax net is not viable,” Mr Lenihan said.

The Minister declared that the economic future of the country was at stake in the coming weeks, suggesting that some needed to wake up and realize how dire a situation Ireland was in.

Meanwhile Fine Gael has proposed €900m in cuts to employer PRSI, to be paid for from the introduction of a carbon tax and from broadening the tax base.

The party's finance spokesperson Richard Bruton said that such a move would according to predictions by the ESRI create 30,000 jobs over time.

"That is the way to go," Mr Bruton said.

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