Finance Minister Brian Lenihan has suggested that December's Budget may cut more than €3 billion from the economy.
Speaking as he arrived for Fianna Fáil's meeting in Galway, Mr Lenihan said the €3 billion figure he had previously mentioned was a minimum, and the Government had to strike a balance by cutting spending in such a way that did not damage the economy.
He said there was scope for the Government to raise the €3 billion figure if it wished but no decision had yet been made.
Earlier,, the EU's economics affairs commissioner, Olli Rehn, urged Ireland to act ruthlessly with a 'rigorous approach' to tightening public finances, amid continuing concerns over the banking sector.
'The Irish government has convincing plans to complete the financial repair in Ireland, which, as we well know, unfortunately is going to be quite costly,' Mr Rehn said.
Ireland is currently reflecting on steps it needs to take towards fiscal consolidation, he said, stressing that it is 'very important that Ireland maintains its rigorous approach as regards public finances, despite these formidable challenges'.
