Further cutbacks in Government services, as well as increases in some fees and charges, are expected when the Minister for Finance, Charlie McCreevy, publishes the Government's spending plans for 2004 later today.
An increase in public service pay of about €1bn is expected to account for the bulk of the spending increases that the Minister will permit.
Leaks have suggested that the minister will try to control growth in government spending - for a number of years before the general election spending grew 40% in two years. Last year, in his book of estimates for 2003, McCreevy took a much firmer hold of spending, and allowed the growth in spending to be very small.
Expectations are that the same will happen this year, if not going even tougher - this gives him better finances for the next three years, which is better for him in the election cycle and for the economy.
It is likely that the growth in spending will be higher than last year's 2%, because McCreevy will include extra money for the benchmarking pay
