The Taoiseach says the State has to correct a budget deficit of eight per cent or €16bn.
Brian Cowen says the country is facing a scenario where we have 2010 expenditure with 2003 income.
He was speaking following the 6th Cabinet meeting in two weeks as the Government prepares for the supplementary Budget on April 7.
The Taoiseach said the scale of the challenge will be difficult.
COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? firstname.lastname@example.org