Minister for Finance Paschal Donohoe has said that no decisions on any specific measures for the Budget have been formalised and that an agreement "won't happen until at least this time of week".
Yesterday, the Economic and Social Research Institute (ESRI), warned the Government of the danger of overheating the economy with its planned €9.4bn spending increase in next month's Budget.
The development came a week after the Central Bank said the additional expenditure in the Budget was "too large".
Speaking today, Minister Donohoe said he and Minister for Public Expenditure Jack Chambers were "united in recognising that this budget has to be one that doesn't add to any risk within our economy".
He said: "Minister Chambers and I met early today to review the progress that we are making on Budget 2026, we are united in recognising that this budget has to be one that doesn't add to any risk within our economy, and we're well aware of the different perspectives and warnings that have been given by various bodies in recent weeks."
Acknowledging the challenges of the cost-of-living crisis, both ministers said they are working on targeted measures to replace the larger one off measures that were in place over a number of years.
"Even though the rate of inflation has come down, the cost of living is still high," Minister Donohoe said.
No decision has been made on extending the rent tax credit which is due to be discontinued at the end of this year.
"I'll just emphasise my recognition of the importance of that credit and the role that it plays in supporting tenants," Mr Donohoe added.
Government urged to address rising energy costs in Budget
Social Democrats TD Sinéad Gibney has said the Government needs to address rising energy costs in the Budget next month.
Speaking on RTÉ's Today with Claire Byrne, Ms Gibney said there are ways to hold energy companies accountable for continuing to hike their prices rather than increasing the fuel allowance every year.
"There needs to be three tier action on energy costs. We need to actually see what the infrastructure capital funding we're going to put in and when we're going to see the results of that", she said.
"Why are some companies able to keep their prices and others aren't? Why do we all have to switch to maintain prices and why are the parent companies of these companies making so much profit?" she said.
"Obviously every company has to make profit, but it doesn't need to be to the extent that the profits are there and we need to invest in renewables," she said.
"It can't just be continually increasing fuel allowances or energy payments, that's not a way to figure out our energy problems in the future," she added.
