The price of a packet of cigarettes has been increased by 40 cents in today's Budget, bringing the price up to more than €10 for many brands. The increase will take effect from midnight.

Finance Minister Michael Noonan, however, has not raised excise duty on alcohol.

The Irish Heart Foundation welcomed the cigarette price hike, saying it will add to the impact of forthcoming measures such as plain pack legislation by delivering a 'short, sharp shock' that will motivate younger smokers in particular to quit and discourage many more teenagers from starting to smoke in the first place.

The Irish Cancer Society also welcomed the Government's announcement that the price of cigarettes will increase by 40c price increase, saying the hike will be a disincentive for children to start smoking and will encourage current smokers to quit.

Public Expenditure and Reform Minister Brendan Howlin, as part of the Budget measures, announced a €429 million increase in public expenditire for 2015, with the increase targeted mainly at critical areas such as health.

The health services will get an allocation of €13.1 billion in 2015