A senior Cabinet minister has indicated that the planned €2.1bn of cuts planned in the upcoming Budget may not be needed.
The Budget is due to be announced five weeks from today - but Minister Brendan Howlin said that it is now simply a case of balancing the books:
"The Budget, which we expected to require an adjustment of €2.1bn, because of the significant progress we've made, will be broadly neutral," he said.
"That means that if there is additional expenditure on any side, we have to find it by making savings elsewhere
"And similarly on the taxation side, if there's to be tax adjustments or tax reductions, they'll have to met within the tax budget.
"I think both Michael Noonan and I have made that clear."
Earlier, Communications Minister Alex White urged his Cabinet colleagues not to lose focus on public services in the Budget.
Minister White's comments come after a number of his Cabinet colleagues signalled “moderate” changes to income tax.
He said that there needs to be a “balance” between public spending and tax changes, while not endangering the “tentative” economic recovery.
Alex White says he will not engage in 'kite-flying' - but said that public services should be a priority.
"I think the government will look in a balanced way at what we could achieve in terms of providing an enhancing public services that people need and, on the other hand, to see what is the potential there in relation to the tax side," he said.
"It's very, very early stages.
"I don't have a kite with me to fly, I didn't witness or hear any other kites today or the last few days - I won't be flying any.
"But I will certainly be participating very closely in the deliberations in Government on the Budget."