The Finance Minister Michael Noonan is expected to spell out up to €1.4bn in tax cuts and spending increases in its Spring Statement tomorrow.

According to The Irish Times, Mr Noonan will use his address to the Dáil to reveal a five-year plan for the economy.

The statement is expected to mark the beginning of anticipated pay talks with public sector unions, and prepare to sell down its stake in AIB.

When Mr Noonan gets to his feet in the Dáil tomorrow afternoon his speech is expected to signal the end of several years of austerity budgets.

His Spring Statement is understood to contain between €1.2bn and €1.4bn in spending increases, changes to income tax and the USC - as well as the tax system for the self-employed.

The statement is based on an economic growth forecast of 4% this year - far above the 2.9 % rate set out in Budget 2015.

Ministers are expected to sign off on the strategy at Cabinet tomorrow, where the Public Expenditure Minister Brendan Howlin is set to ask for permission to enter talks with unions about public pay restoration.

While the government is also likely to start to examine how to sell down its stake in Allied Irish Banks.