The Minister of State Finian McGrath has said there may be compromise on the payment of pensions and other welfare increases to be announced in the Budget.

The Government is considering deferring these until later next year so as to allow greater spending flexibility for other groups.

However the Independent Alliance TD said the party is seeking to have payments introduced sooner rather than later.

Speaking on RTÉ Radio One, Mr McGrath said: "We are pushing for the nearest possible date to the first of January but I do accept the point that there might have to be compromise."

Mr McGrath added that for every month the payments are deferred it will cost €30m.

Meanwhile, a Fianna Fáil spokesperson has said the party is trying to influence, as far as it can, elements of the Budget as talks continue between members of the coalition Government.

Speaking to RTÉ, Timmy Dooley said: "Confidence and supply was about facilitating the emergence of a Government between Fine Gael and a group of Independents.

"When it came to the vote for Taoiseach, we abstained. We allowed that simple majority to go ahead.

"We said we couldn't create or provide an alternative so we weren't going to stand in the way because it would have led to a cycle of elections similar to what has happened in Spain.

"We did the same thing when it came to the appointment of a Cabinet and next Tuesday we'll do the same thing in relation to the Budget."