The Minister for Finance, Charlie McCreevy has indicated that any increase in public spending in the forthcoming budget will be lower than this year's target of just under 7%.
He said public spending must reflect lower levels of economic growth.
Mr McCreevy said the performance of the economy next year would depend on 'global economic circumstances'.
Mr McCreevy was speaking to reporters before delivering a speech to the Leinster Institute of Chartered Accountants.
In his speech, he said December's Budget will be 'strategic and not reactive'.
Commenting on last week's call by the ESRI for a less contractionary budget this year, the Minister said he didn't have 'the luxury of revising forecasts every two weeks' and had to plan for the year as a whole.
