* To present mini-budget on April 7
* Expects economy to contract by 6 to 6.5 percent in 2009
(Adds further comment, detail)
By Jonathan Saul
DUBLIN, March 11 (Reuters) - Ireland will hurry ahead with a mini-budget next month as public finances deteriorate and the country's recession deepens, Prime Minister Brian Cowen said on Wednesday.
Ireland's budget shortfall soared to 2 billion euros in January-February, prompting Cowen earlier this month to call for another budget revision -- the second since October -- to keep the deficit at 9.5 percent of gross domestic product, the highest in the euro zone.
Cowen said the economy now looked likely to contract by 6-6.5 percent this year -- much worse than earlier estimates.
"The cabinet met this morning. We would intend bringing that budget on April 7 to the house," Cowen told deputies on Wednesday.
"We are bringing forward a supplementary budget because the circumstances demand it in view of the deterioration we have seen in the public finances even since the beginning of the year," he said.
Ireland is rated triple A by all three ratings agencies.
Fitch last week joined other agencies in placing Ireland's outlook on negative. Fitch warned it could cut the sovereign's rating after the sharp slide in tax revenues.
Cowen reiterated the government was committed to meeting its budget deficit target of 9.5 percent of this year.
The government has already announced planned cuts of 2 billion euros, including a pension levy on public sector workers, which has led to a slump in Cowen's approval ratings. He has also signalled tax hikes are on the way.
Cowen said on Wednesday a further shortfall of 4 to 4.5 billion euros between expenditure and taxation would need to be addressed in the budget.
"It is a matter of political judgement for government to decide what further necessary steps we wish to take," he said.
The bursting of a property bubble and global turmoil have battered the former "Celtic Tiger's" economy and the government has already warned Ireland faced its worst recession on record this year.
"It was said at budget time it would be in the region of 2 percent. We said in January it would be about 4 percent," Cowen said, referring to the economic contraction.
"The indications are now it could well be 6-6.5 percent. So that shows you the fragility of the economy," he said without giving further details.
Ireland's central bank governor John Hurley said on Tuesday GDP was expected to shrink by over 6 percent this year, two percentage points more than earlier expected, with that forecast also under threat of revision.
Hurley added the global downturn had hit Ireland's small, open economy more than others, leading to a sharp fall in exports and likely to result in unemployment averaging over 11 percent this year. (Editing by Patrick Graham and Chris Pizzey)