The Department of Health has said the Health Service Executive will have a deficit at the end of the year due to pressure in certain areas including acute hospitals and disability services.
A letter from the Department of Health to the Budgetary Oversight Committee, seen by RTÉ News, says this is a matter of "concern" for the Government.
The HSE had a deficit of €169m at the end last May but it was thought this could be reduced.
The letter says the department is working with the executive to mitigate the deficit and it said savings would be made by the end of the year.
Despite these efforts, the letter says the HSE will have an overrun at the end of the year.
It says that cutting the rehabilitative training allowance for disabled school leavers will save €3.7m over a four-year period.
However, it states that this money will be reinvested into disability day services.
The letter also reveals that the estimated running costs for the new National Children's Hospital have increased by €41m annually.
In a statement, Sinn Féin's Pearse Doherty said the letter shows the Government is unable to manage their budgets.
"In an FOI (Freedom of Information) we received last month, the Government confirmed it was hoping to 'break even' through what is described as 'saving actions' in disability and older person services and acute hospitals.
Deputy Doherty also criticised the decision to cut the rehabilitative training scheme.
"This is just one example of the Government's apparent policy to cut the low hanging fruit of the health service to offset their waste and mismanagement in other areas such as the National Children's Hospital."
The new HSE Director General Paul Reid told the Dail's Public Accounts Committee earlier this year that the HSE would break-even by the end of 2019.