The Minister for Finance Mr Charlie McCreevy has refused to rule out an increase in taxes to address the worsening financial situation.
Speaking on RTÉ at lunchtime, Mr McCreevy insisted the Government would produce a budget surplus for 2002 and 2003.
However, he would not rule out an increase in taxes if the budgetary situation deteriorated further.
Last week, the Economic and Social Research Institute predicted a €947 million General Government Balance deficit by December in its quarterly bulletin.