The Government’s ‘rainy day fund’ may not be strong enough to help Ireland cope with another “severe economic crisis” — and may breach EU stability deal rules even if the multibillion-euro fund is used.

The Government are under fire for holding back money for cash-starved services and instead plunging the unspent budgets into refunding households for the botched water charges regime.

Finance Minister Michael Noonan has cautioned against “rushing” into a referendum on lifting constitutional constraints restricting opposition TDs from passing money bills.