The head of the government's budget watchdog has again insisted that the Governments should cut a full two billion euro in the next budget.

Professor John McHale says the public finances are still weak - and delaying pain now only increases the risk of bigger pain in future.

Our political correspondent Gavan Reilly reports.

Only yesterday Michael Noonan and Brendan Howlin said the exchequer returns were looking good - and that there would be no need for the 2 billion euro as planned.

But at the MacGill Summer School last night, the government's own budget advisors urged it to stick to the original plan - even if it means more pain than necessary.

Professor John McHale of the Fiscal Advisory Council says any less than 2 billion now, and a global downturn next year leaves us in real trouble:

The EU and IMF have already asked for a 2billion budget - and they're warning that the government is walking a tightrope if it goes easy now.