The Minister for Public Expenditure and Reform, has said that the upcoming Budget will be done "…within the fiscally prudent framework…" outlined in the Summer Economic Statement.

This will see the Budget deficit reduced to 1.5% of GDP.

In a statement following today's Cabinet meeting, Michael McGrath also repeated the Government's commitment to only borrow for investment from 2023.

In a memo brought before Cabinet today, Minister McGrath said provision had been made for a further €6.8bn of Covid expenditure next year bringing the total committed to €38bn.

He said he and his Department will be "engaging with Government colleagues intensively in the coming weeks" and "baseline position" for negotiations was the expenditure ceiling next year of €88.8bn.

"The Government is focused on delivering in respect of the key commitment in the Programme for Government in the areas of Health, Housing and Climate Change, and other pressing challenges," he said.

"This will be done within the fiscally prudent framework we have set out which charts a clear path to reducing the General Government Balance to 1.5% of GDP by 2025."

"By 2023, it is intended that Government borrowing would only be for capital investment purposes."