The Fianna Fáil leader and the Taoiseach have opened discussions on a "review" of the confidence and supply arrangement that is keeping the government afloat.
The two men spoke over the phone this evening.
The Minister for Finance has said negotiations on an extension will begin in the coming days.
Paschal Donohoe was speaking to Ivan Yates on the Hard Shoulder after announcing Budget 2019 this afternoon.
He denied that the Budget was an election budget – insisting it was a prudent one – with the threat of Brexit and international protectionism looming over the economy.
“The election budget that we would have seen in previous years would have massive increases in expenditure funded by borrowing and massive tax packages,” he said.
“Look where that got us; look at the ruin it caused.
“I think you are going to see moves happen across the next number of hours or even days that will create the environment in which the negotiations in relation to the supply and confidence agreement and the extension of it will begin.”
🎬 WATCH: @IvanYatesNT's initial reaction to #Budget19 #NTFM pic.twitter.com/nLlok7sSPJ
— Newstalk (@NewstalkFM) October 9, 2018
Budget 2019 brings the three year agreement between Fianna Fáil and Fine Gael to a close.
The Fianna Fáil leader Micheál Martin said a number of times in recent weeks that he would not consider an extension until the Budget was agreed and announced.
It remains to be seen whether the party is interested in propping up the Government any longer.
There were very few surprises when the package was revealed in the Dáil this afternoon – with the average worker and those on social welfare set to find themselves €5 richer.
Cigarettes are going up by 50c for a pack of 20 and there was no increase in the price of alcohol.
However the increase in the VAT rate for the hospitality sector to 13.5% could yet impact on nights out in Irish towns and cities.
Minister Donohoe allocated €2.3bn to the State's housing programme for 2019; however homeless charities and opposition parties have warned that the investment falls short of what is required to tackle the crises in housing and homelessness.
Meanwhile teachers have slammed €10.8bn budget for the Department of Education – labelling a 5% increase in the standard capitation rate for pupils a “pittance.”
You can listen back to the Finance Minister’s appearance on the Hard Shoulder here:
