Minister for Finance Brian Lenihan said the Government has made no decisions yet regarding a pay freeze.
Speaking in New Ross this afternoon, Mr Lenihan said Ireland is facing serious challenges and he appealed for everybody to pull together.
He admitted that savings will have to be made and said the picture will be clearer on Wednesday with the publication of half yearly exchequer returns as to the extent of how much Government revenue has fallen.
When asked about a pay freeze in the public sector, he said no decisions have been made yet but cautioned that prudent, determined action will be taken by the Government to ensure the finances are safeguarded.
Regarding major infrastructural projects in the pipeline (such as the Metro for Dublin) the minister said the Government will be taking decisions to prioritise essential projects but that he did not think it was a good idea to delay all major works.
