The Government has flexibility to help with the rising cost of energy in the short-term.

That's according to Finance Minister Paschal Donohoe, who said he is "really aware" that people are struggling and will do so in the months ahead.

He told Newstalk Breakfast: "It will the case in the medium-term - that if we want to make the State permanently bigger, if we want to be intervening in our society in new ways - and it's very likely that we will be, that we'll need to pay for that.

"Other countries, other borrowers will expect us to do that.

"But in the very short term, we do have flexibility, particularly within 2022, to look at how we can help with the rising cost of energy that is a challenge for so many."

On Budget 2023, he said: "What we will do, in relation to all taxes - which we do every year in the budget - is we will assess where we stand with those individual decisions.

"And then make a decision on Budget Day regarding their future".

Minister Donohoe said he is "absolutely committed" to carbon taxation.

"I believe it's invaluable in funding and helping our country transition to a new and better future.

"But the Government decides all taxes on Budget Day, and I'll be able to confirm where we are on that point then".

While he expressed caution on over-reliance an any one area, such as corporation tax.

"We do need to be careful, even in responding back to the new challenges that we're facing today, that we don't create new risks for us tomorrow.

"The tax code... has been a great strength during the pandemic - but as we move well beyond that, we just need to ensure that we don't become overly reliant on some forms of tax to help deal with the challenges of today."