There's a warning today that 'considerable work' is still needed to fix the public finances.

The Irish Fiscal Advisory Council says the coalition should proceed with caution.

Just last week, official figures showed a significant improvement in the country's growth figures.

But the Fiscal Advisory Council, which has a history of prudence, is urging the government to proceed with another tough budget.

The Council says Ireland's fiscal policy has a history of contributing to boom and bust cycles, and now is the time to break this pattern.

Last week the Finance Minister said the coalition would proceed with caution, but admitted a 'neutral' budget could be unveiled next month.

However the Council says that because this is the first budget since Ireland exited the bailout, being 'prudent' would show the government is serious about fixing the remaining problems in the economy.

And it highlights the high levels of debt, urging the coalition to go ahead with a 2 billion euro cut next month.