The government are forecasting a budget deficit this year of 7.3 percent, just inside the target set by Ireland's international lenders.
In a document published today, the Department of Finance are forecasting that it will collect tax revenues of 37.8 billion euro this year, 125 million below its target.
For 2014, the department expects to collect total taxes of 40 billion euro.
Government spending on public services will fall to 50.4 billion euro in 2014, from an estimated 51.2 billion this year.
The figure for 2014 excludes cuts due to be announced by finance minister Michael Noonan in the budget on Wednesday.
If there were no tax increases or more spending cuts in 2014, then the budget deficit would be 5.8 percent in 2014, the report says.
Minister Noonan has already said that he will take 2.5 billion euro out of the economy in the budget.
That will reduce the deficit to below 5 percent - well under the target set by the bailout team of the IMF, European Central Bank and European Commission.
The Taoiseach's warned that next week's difficult budget must make work pay - through reform of the social welfare system.
Meanwhile, the Finance Minister says the country is on the cusp of exiting the bailout programme.
Opening the Fine Gael national conference last night, Enda Kenny warned that it must pay to go to work.
In the clearest warning yet to Joan Burton to reform the welfare system he said without it we'd end up with a period of prolonged queues at the hatch.
He mentioned social employment clauses - the first time that the Government has signalled people would have to engage in work programmes in return for their welfare payment.
The Finance Minister Michael Noonan launched an attack on Fianna Fáil saying no-one can forget how they staggered out the door into the oblivion which they richly deserved.
Enda Kenny also confirmed he will set up a new internal group called the Collins Institute to come up with fresh policies for the party.