Businesses have lost out on more than £2bn in the last decade due to an increasing volume of legislation, according to business lobby group the CBI.
Mr Smyth said additional support for growth and job creation, and less red tape, particularly relating to employment were the main preoccupations for Northern Ireland business.
Nigel Smyth of the CBI says businesses are having to deal with an increase in legislation
He said that business organisations had been lobbying hard to encourage government to reduce barriers to high-growth companies in order to create employment.
"This includes doing something to relieve the regulatory burden," he said.
"But they are also having to cope with increasing costs such as the carbon reduction commitment, which from being an incentive, has now turned into a carbon tax."
Mr Smyth said that Northern Ireland companies were competing in global markets now, and many of their competitors were not having to deal with the same level of regulation.
As a result they had a lower cost base than companies based in the UK, he said
He said: "The danger is that some of these highly successful, highly productive companies will simply move to locations where the cost base is not so high."
Dr Esmond Birnie, the chief economist for PricewaterhouseCoopers in Northern Ireland, believes that any tax increases in the Budget would have a serious effect on the local economy.
"February's unemployment is up 6.3% year-on-year," Dr Birnie said.
"That is the highest increase of all 12 UK regions, and we are forecasting that local economic growth will not exceed one per cent in 2011.
"It means that further tax increases could have a disproportionate impact on economic growth and business confidence."
On the bright side, it is thought that the 1p rise in fuel duty due on 1st April might be postponed because of the recent steep increase in oil prices, while personal tax allowances are set to go up by £1,000 to £7,475 for 2011/12.
It is estimated that this should reduce the tax liability of 23 million taxpayers by an average of £200 a year.
The Chancellor has already promised to increase personal allowances to £10,000 by 2015.
An announcement is also expected on the subject of corporation tax, or company profits.
Many economists and Northern Ireland business people have been arguing strongly that a reduction from the current rate of 28% closer to the rate of 12.5% which exists in the Republic, would do much to encourage inward investment.
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