The Government has refused to bow to demands from backbench Fianna Fáil TDs for extra funds for the Community Employment Scheme (CES) next year.
Adopting a tough line, the Minister for Finance, Mr McCreevy, made it clear that the 2004 spending figures have already been set and accepted by the Dáil.
The Minister was briefed on backbench feeling yesterday by the Government Chief Whip, Ms Mary Hanafin, following demands for extra resources supported by 40 TDs.
The meeting was also attended by the Assistant Chief Whip, Mr Billy Kelleher, and the chairman of the Fianna Fáil parliamentary party, Mr Seamus Kirk.
However, the Minister of State for Labour Affairs, Mr Frank Fahey, continued his push yesterday for 5,000 extra CES places next year.
In the Book of Estimates, the Government committed to spend €351 million next year on 25,000 CES, Jobs Initiative and Social Economy places - the same as this year.
"We have maintained the status quo.
"If somebody is saying that there is a possibility of a funding move in the Budget next week, then I have to tell you that I don't think that they are right," said a Government source.
Speaking in Galway, the Minister of State claimed that he was not at loggerheads with the Tánaiste and Minister for Enterprise, Trade and Employment, Ms Harney.
Mr Fahey's decision to publicly demand increased spending has caused substantial irritation among senior ranks in the Government.
Mr Fahey told the parliamentary party on Tuesday that Fianna Fáil would be judged harshly by the electorate if it did not protect the CES.
"There is an absolute need for the policy to be accepted. It is the critical decision for the party and the Government.
"If we are a left-of-centre party we have got to look after the most vulnerable people in our society," he said.
Accusing Mr Fahey of grandstanding, one source said a public challenge to the Minister for Finance, Mr McCreevy, is usually the one way to most surely guarantee defeat.
Mr Fahey's decision to mount a public challenge on the issue has raised speculation within Fianna Fáil about whether he intends to run in next year's European Parliament elections.
