The Minister for Finance, Brian Lenihan, has confirmed that next year's current Budget shortfall will be larger than the €4.7 billion he had budgeted for.
Exchequer figures published earlier this week showed the shortfall in taxes this year could be as high as €8 billion - €2 billion more than expected at Budget time.
Speaking in the Seanad, Mr Lenihan said further cuts to state agencies above those already announced in the budget would have to be implemented.
Budget 2009 was unveiled by the Minister in October. Its current deficit estimate of €4.7 billion was the equivalent to 10% of the planned day-to-day spending of all Government departments for 2009.
The Taoiseach said it meant that 10% of the cost of paying all teachers, nurses, guards and civil servants would have to be borrowed and that 10% of the cost of Government programmes had to be borrowed.
The Minister for Finance accepted that this deficit would be larger because the slowdown in the economy was greater than predicted.
