Neutral budget likely in two weeks time.

It is looking increasingly likely that an income tax cut is on the way in the budget later this month.

The Finance Minister Michael Noonan has told the Dáil that he can have a broadly neutral budget by effectively doing nothing.

He says increasing tax returns mean the deficit is falling without him being forced to take any action.

He says he cannot announce the budget today, but confirmed income tax cuts are on the agenda.

“With Budget 2015 only two weeks away, I'm not prepared to be drawn into speculation on specific budgetary measures at this time” he said.

“However, I will say that as part of the normal budgetary preparations I'm currently examining potential options for changes to the tax system, as part of the overall budget package to be agreed by government” he added.