A review of Government spending that aims to identify €7 billion in annual savings is expected to be presented to the Minister for Finance by the end of the week.
The report will primarily focus on public pay and pensions, and social welfare. Several sources centrally involved in the process, who spoke on condition of anonymity, said the cuts would span across all Government departments and State agencies and provide a list of options to the Government on where cutbacks can be applied.
The group, led by economist Colm McCarthy, is to hold a final meeting today to conclude its work and a report should be received by the Mr Lenihan this week.
A Government spokeswoman said it was "unlikely" the report would be received by Mr Lenihan today but he may get it tomorrow and certainly at some stage this week.
However, the Cabinet is unlikely to hold much discussion on the issue when it meets today, though next week's meeting, or a subsequent one, will be devoted entirely to the issue.
Ministers have yet to decide how they will deal with the results of the committee's work, though some favour publishing it quickly, if only to avoid a summer of persistent "leaks", but others fear that publication "could put too many options before people and poison the Lisbon debate", as one source put it last night.
The three-strong Expenditure Review Committee, better known as An Bord Snip Nua, is proposing cuts in all social welfare payments, including pensions and disability benefits.
Following its review of Government spending, the across-the-board welfare cut, though politically toxic, is part of the expert group’s plans to reduce the €21 billion Department of Social and Family Affairs’ budget by €1.5 billion over the coming 12 months.
Meanwhile, the Minister for the Environment, Heritage and Local Government is preparing to merge several housing agencies reporting to him, including the Affordable Homes Partnership and the National Building Agency.
Rent supplement rates should also be cut, though the group has also recommended that child benefit should be simply cut, rather than means-tested, Government sources have indicated.
The numbers in the Permanent Defence Forces should be reduced over time by between 500 and 1,000, which would effectively mean a recruitment and promotions ban for several years.
Rent supplements must be reduced, the experts recommend. Nearly 5 per cent of the welfare budget – €490 million – goes to landlords, nearly double the percentage spent on accommodation by the State a decade ago.
Two Government departments: Éamon Ó Cuív’s Department of Community, Rural and Gaeltacht Affairs and Martin Cullen’s Arts, Sport and Tourism should be “reviewed”, the report also recommends.