Fine Gael has accused the Government of playing down the Exchequer's potential tax revenues for next year, following the publication of the end-of-year figures.
Despite the difficulties, the Government's figures show the current account still producing a €3.4 billion surplus.
Mr Richard Bruton, Fine Gael spokesman on finance, said the Department of Finance was estimating that income tax receipts would grow by just 2 per cent, while corporation tax would fall by 14 per cent.
"They are clearly taking a very grim view of the economy next year. The Department of Finance is clearly circling the wagons," Mr Bruton told The Irish Times.
However, he raised question marks over the figures since the 2 per cent income tax estimate must be compared with a 6 per cent rise in pay related social insurance (PRSI) contributions. "It shows that the Government has not got to grips with the haemorrhaging that has taken place in tax revenues following changes by the Minister."
Furthermore, he queried the Government's declaration that the general government balance will be €403 million in the red, since the figures made no provision for extra public service pay. "It looks like they are estimating that growth next year will be about 2½ per cent, while the Economic and Social Research Institute has produced a figure of 3½ per cent."
He believed that the Minister for Finance, Mr McCreevy, would produce a series of supplementary budget figures after the Budget. "The Minister for Finance is trying to make the figures look good until the Budget is out of the way," Mr Bruton said.
Meanwhile, the Labour Party's finance spokeswoman, Ms Joan Burton said the 2002 deficit was "a direct result of Mr McCreevy's excessive tax cuts for the better- off over successive budgets".
"It is his incompetent failure to assess the cost of these tax give-aways, not the international downturn, which explains the €1 billion tax shortfall this year. That, and his ill-judged SSIA scheme. It is simply not acceptable to impose the burden of this incompetence on ordinary families," Ms Burton said.
"The Minister must start living up to his election promises, and stop the cuts in health, education, policing and other vital services."
The Minister's "short-sighted shredding" of capital investment would condemn the economy to a future of slower growth, higher inflation and fewer jobs, she added. "These cuts are simply not necessary. With prudent borrowing for capital investment, we can afford to maintain public investment."