Tánaiste Eamon Gilmore has said that difficult decisions will be made in relation to the Budget but he is hopeful that people will understand.
Minister Gilmore said that savings of €3.5bn have to be made and that it will be tough on everyone.
His comments come as Ministers prepare for a Cabinet meeting at 5pm this evening, where they are hoping to resolve their differences on Budget negotiations.
Health and welfare cuts are understood to be proving most divisive.
Eamon Gilmore says the tough decisions are about getting Ireland back on track:
"I think that we have to be very straight with people about the Budget," he said.
"The Budget is going to be very difficult, I think everybody knows that.
"There's an adjustment of about €3.5bn that has to be made, and there are no easy decisions to be made in relation to the Budget.
"Also I think [the Government needs to] explain to people that this Budget is about getting us out of the financial crisis that we inherited, getting the economy to recover and moving on."