The government might not have to impose any new cuts, taxes or charges on the public in next year's budget.

That's according to a senior economist at the ESRI, which has today published its latest quarterly update.

It's forecasting GNP growth of 3 and a half per cent this year, and says the Irish economy is now recovering 'quite vigorously' from the downturn.

Professor John Fitzgerald says apart from the water charges already in the pipeline - the economy doesn't need any more cuts