The Cabinet met today to finalise plans for December's budget, against the backdrop of a slowdown in economic growth.
Minister for Finance Brian Cowen has already warned his colleagues that spending increases next year will have to be curtailed. This is to reflect the drop in tax revenue, mainly due to the downturn in the property market.
Arriving at Government Buildings for today's special Cabinet meeting, ministers spoke of the need to prioritise key areas while maintaining a tight grip on the public finances.
While the overall budgetary position remains relatively strong, the Exchequer faces a cash flow deficit of €1bn as a result of the fall in tax receipts.
Final details of the budget package for 2008 will be worked out over the next two weeks.
