Minister for Children Frances Fitzgerald has said there are a range of financial issues that need to be addressed before a second year of free pre-school education for children goes ahead.
The minister was speaking in the Dáil, where she was questioned whether direct payment of child benefit would be used to fund the scheme.
Ms Fitzgerald said she is awaiting the findings of the Education Committee, which is currently assessing the Mangan Report.
The minister said a range of steps would need to be taken in order to achieve funding for a second year.
She said that she was "mindful" of the current fiscal situation.
Minister for Education Ruairi Quinn first raised the issue yesterday morning on RTÉ's Morning Ireland, which drew criticism from the Opposition.
Speaking later on RTÉ's Late Debate, Ms Fitzgerald said there is overwhelming evidence that investing in children's early years of education is important and should be an economic imperative.
She said there was good evidence about the value of early investment in children.
Minister Fitzgerald said she believed that it would have to be built up yearly.
