Fianna Fáil Leader Micheál Martin has said figures in the December Budget in relation to health were false and clearly unachievable.
Speaking in the Dáil, Mr Martin said the "books were cooked to give a false and dishonest estimate" and "we are facing ward and bed closures."
The Taoiseach Enda Kenny has denied this but said that the Health Service Executive was facing a serious challenge.
He said the HSE has outlined possible approaches for dealing with a net deficit of €200m.
Possible ways of dealing with the deficit include a reduction of agency staff and implementing reforms under the Croke Park agreement.
Mr Kenny added that the Executive has submitted a cost containment proposal which the Government is now considering.
