The next 12 months will be a "holding year" in terms of arts expenditure, with a lack of resources meaning more ambitious projects will not be feasible, the Arts Council has warned.
Speaking in advance of the announcement of the council's budgetary priorities next week, a spokeswoman, Ms Nessa O'Mahony, said plans that "seemed feasible" half way through the year were probably not going to be.
The council received a 3 per cent increase in funding in the Budget.
"It's a small increase," said Ms O'Mahony, "but in the current economic context the council was pleased to get an increase of any kind."
She said the board would meet next Monday to take decisions on a large number of revenue clients.
"The majority of decisions will be taken before Christmas, with all taken by the end of January."
All applicants for funding would be notified of the council's decisions by mid-February, with the majority notified before the end of the year.
Among the spending increases the council is committed to are a rise of €0.5 million (£393,780) to €3.18 million (£2.5 million) to artists.
Grants to arts organisations will increase by €3 million (£2.3 million) overall.
