Senior Minister says there may still be tax cuts.

The Public Expenditure Minister says there may still be room for income tax relief in October's Budget – despite warnings from the Government's fiscal watchdog.

The Irish Fiscal Advisory Council says the Government should stick to €2 billion in cuts and new taxes if it wants to meet its 3 per cent deficit target. 

It also says it's concerned about the plan to give some form of income tax relief. 

But Minister Brendan Howlin insists the state's finances are in good shape – and there may yet be room for tax cuts.