The government is to provide free GP care to under 5s as part of a package of measures targeting families with young children.

Cabinet ministers met last night to sign off on the final budget which will include cuts and tax increases totaling €2.5 billion.

The government has agreed to give the parents of nearly 250,000 children a new universal GP only medical card. The initiative will cost them €40 million.

It will be balanced by toughening up on the income thresholds on medical cards for the over 70s, which will result in some card holders losing out. 

Pensioners will also be affected by a cut in the telephone allowance.

A new reduced dole pavement for those aged under 27 is on the cards.

The government also agreed last night not to cut child benefit, and to protect the the pupil teacher ratioThe budget will be outlined by the Ministers for Finance and Public Expenditure in the Dail tomorrow afternoon.