The Cabinet is to sign off on a reduced capital expenditure programme this morning. Government sources confirmed last night that the high-profile Metro North rail project is unlikely to be on the list.
The Cabinet meeting, due to start at 10.30am, is expected to focus mainly on infrastructure projects that are seen as "critical" for economic recovery.
In his medium-term fiscal statement last Friday, Minister for Finance Michael Noonan announced a €750 million cut in capital spending for 2012. The programme of surviving capital projects is to be announced on Thursday.
Fianna Fáil finance spokesman Michael McGrath said last night the current capital expenditure programme was being significantly under-utilised.
"The evidence so far this year is that the capital budget isn't even being fully spent, with an under-spend of €340 million for the first 10 months of the year, 12 per cent behind target.
"There is excellent value for money to be had in delivering capital projects at the present time and we would like the Government to take full advantage of that," Mr McGrath added.
He said the Government had now decided on the overall budget for capital projects over the next four years. "We believe that investment should be channelled to the greatest extent possible to labour-intensive capital projects so as to maximise the number of jobs created from the spend."
Sinn Féin transport spokesman Dessie Ellis said scrapping Metro North would be damaging both for Dublin and for Ireland and a blow to the many people hoping to find work on the project.
"This decision will put an end to a process which started with the publication of Transport 21 back in 2005.
"Six years later, with massive consultation having taken place and in excess of €150 million being spent from the public purse, it is to be abandoned," the Dublin North West TD said.
He added: "This is a chance for this Government to put jobs, infrastructure and development above the bailouts and the kow-towing to the troika. It would seem now they have failed miserably to do this.
"The possibility that we will scrap this massively worthwhile project just one week after the State paid $1 billion to unguaranteed bondholders is a huge indictment of this Government and its vision for Ireland," Mr Ellis said.
Sinn Féin is proposing a private members' motion on the Anglo Irish Bank promissory note, to be debated this week. It calls on the Government to "make clear that it is not in a position to pay this toxic private banking debt".
The motion goes on to demand that the Taoiseach and the Minister for Finance "enter into immediate discussions with the European Central Bank to have the promissory note withdrawn and to remove this toxic private banking liability from the State and the taxpayer".
The party's finance spokesman, Pearse Doherty, said: "The Anglo Irish promissory note is a national scandal. It will cost the taxpayer at least €74 billion by 2031 and, according to some economists, may cost more than €90 billion."
Labour TD for Dublin North Central Aodhán Ó Ríordáin said the refusal to pass on the European Central Bank's interest rate cut by several financial institutions showed that "Government action is urgently needed".
"I welcome the moves from the financial institutions who are willing to pass on the rate cut, but the mixed messages from some others is really disappointing."