Minister for Finance Brian Lenihan said today slower economic growth will not force the Government to scale back big infrastructure projects.
But Mr Lenihan did point to the constraints that would be imposed by a slowing economy and its impact on tax receipts.
"The budgetary position this year will not be as favourable or as rosy as it has been in recent years," Mr Lenihan said.
"Obviously tough decisions will have to be taken by the government," he said in an interview with RTE.
Taoiseach Brian Cowen told the Dáil yesterday National Development Plan (NDP) assumed an economic growth of over 4.5 per cent a year.
Mr Lenihan acknowledged he faced a tough first year in the job but said no infrastructure cutbacks were planned.
"What I think the Taoiseach was doing yesterday and rightly and properly was to strike a cautionary note that of course the plan has always been subject to a prudent budgetary policy," Mr Lenihan said.
The Government has earmarked €8.6 billion for capital investment projects in 2008, as part of its NDP spending.