Dublin - Irish President Mary McAleese issued a statement Wednesday to say she had told the government "of her intention to surrender 10 per cent of her salary in light of the current national budgetary situation."

Irish Finance Minister Brian Lenihan announced Tuesday 2 billion euros (2.7 billion dollars) of savings in what he said was "a call to patriotic action," including a 10-per-cent pay cut for government ministers and top civil servants.

The speaker and deputy speaker of the Dail, or lower house of parliament, also offered to take a 10-per-cent pay cut Wednesday, although they were excluded from the original plan.

Ireland's annual budget had been brought forward from December to deal with the worsening global financial crisis.

In the toughest budget for 20 years aimed at plugging an estimated 13 billion-euro hole in the public finances in 2009, Lenihan introduced a new levy on all income and increased duties on wine, cigarettes and fuel.

He announced the disappearance of 41 state agencies, the introduction of means testing for medical cards for the over 70s, hospital charge increases, the abolition of child benefit for 18- year-olds and reductions in mortgage relief for middle-income families.

Irish Prime Minister Brian Cowen said Wednesday in the Dail, "Unprecedented times call for unprecedented measures."

Cowen said in the coming weeks he would announce "a rigorous appraisal of staffing levels" in the public sector.

In a wide-ranging speech, Cowen said that Irish people would be worse off because of the budget, but that the budget was necessary to prepare Ireland to recover from the crisis.

"We face the most serious global economic circumstances for almost a century. But, one thing is certain, it will pass. And when it does, Ireland needs to be in a position to take advantage," he said Wednesday.

Opposition leader Enda Kenny described the budget as "one of the most swingeing and savage" in years, national broadcaster RTE reported.

Labour leader Eamon Gilmore asked Cowen which of the "39 taxes and charges" embarrassed him most, RTE reported. (dpa)