Minister for Public Expenditure and Reform Brendan Howlin has announced that the €100 reduced rate of jobseeker's allowance will be extended to those up to age 22.
For new entrants from January, it will extend to age 24.
The reduced rate of €144 will apply to those reaching 25 from January 2014.
The savings from these measures will go towards the Youth Guarantee Fund, which will receive €14 million to support additional activation places for people under 25.
Mr Howlin said €1.6 billion would be allocated towards the creation of 300,000 places in work, education and training programmes across the Departments of Social Protection and Education and Skills.
That, he said, represented an increase of 18,000, or 7%, on 2012.
€9 million in capital expenditure will be allocated to complete the roll out of the "one stop shop" Intreo offices to provide better services for the unemployed.
The minister also announced a €10 million fund to go towards an unfinished housing estate resolution initiative.
That is on top of the €10 million that has been allocated to resolve the problems at Priory Hall in north Dublin.
He also announced the allocation of €30 million of the lottery licence proceeds to recommence the State's house building programme.
It is hoped it will facilitate the construction of up to 500 additional housing units between a small number of new builds and the return of previously uninhabitable units to the housing stock.
Mr Howlin said in order to reduce costs of the Household Benefits Package, which accounts for over €280m this year, he will discontinue the remaining telephone allowance for all recipients from January 2014.
The rate of maternity benefit will also be standardised at €230 a week for new claimants from January next year. This will save €30m next year.
The minister told the Dáil in his Budget speech that he proposes to allocate €49.6 billion to voted current expenditure in 2014.
He said he will allocate €37m to fund the roll out of free GP care for children under five, under a first step in the Government's programme to provide free GP care for all.
New savings measures in health include €50m on drugs from generic substitution, €113m from a review of all medical cards to remove ineligible and redundant cards, and €25m from a lowering of the income thresholds for the over 70s to €900 a week for a couple and €500 for a single person.
Mr Howlin said the in order to reduce costs of the Household Benefits Package, which accounts for over €280m this year, he will discontinue the remaining telephone allowance for all recipients from January 2014.
RTÉ's income from the free television licence in the household benefits package will also be cut by €5m a year.
The Minister said the rate of maternity benefit will be standardised at €230 a week for new claimants from January next year. This will save €30m next year.
Child benefit rates are being maintained at €130 a month for the first three children in a family. The Minister's expenditure report says that the rate for the fourth child will be cut from €140 to €130 a month from next January.