The Finance Minister Michael Noonan says there is not a lot of money for tax relief in the budget next month.
His comments mean cuts to the Universal Social Charge (USC) will be less than he promised during the election.
Just around €330m will be available for tax cuts in October.
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Speaking at the Fine Gael annual parliamentary party think-in in Kildare, he says people voted for more public services than tax cuts.
Mr Noonan says the changes will not be as dramatic promised in the general election campaign, as more money is to go towards public services.