Minister for the Environment John Gormley will reduce capital and current expenditure by a total of €48.3 million this year.
Mr Gormley told the Dáil late last night that €40 million would come from the capital expenditure budget of €2.233 billion and €8.3 million from the current expenditure budget.
He stressed, however, that none of this money "is being taken from the Local Authority Housing Construction or the Water Services Investment programmes. These are key infrastructural areas for economic development and environmental protection."
Local authorities would spend more than €10 billion in 2008, supporting increased investment in housing, water and waste services, national and non-national roads and an ever expanding range of other services, of which the department of the environment would contribute more than €3 billion, he said.
"Those deputies opposite who expressed concerns about that can be assured that funding for major infrastructural projects will be continued."
He said: "there are some capital areas where expenditure has been less than expected in the first half of the year or where capital spending has not begun as in the case of the Gateways Innovation Fund". This funding would be returned to the Exchequer.
From current expenditure, Mr Gormley said that "this reduction is focused on achieving more effective administration and I am now reviewing various current provisions to achieve this level of saving overall".
He warned there would have to be "new discipline in managing administration and no area is immune from retrenchment".
He stressed that the Government would build on progress already made to "make an effective transition to a low-carbon society.
It is absolutely essential that any investment decisions are taken in light of our international climate change commitments and that was part of the Government decision made and announced yesterday by the Minister for Finance and I was very glad when I heard it." Earlier Minister of State for overseas aid Peter Power said that while "adjustments totalling €45 million will be made" he was "particularly concerned that funding providing to Irish non-governmental organisations and our missionaries should be maintained so no reduction will be made in their allocation."