Minister’s have today started a five month long task of slashing three billion euro in the next budget.

The Cabinet’s holding a special meeting with Ministers admitting a tough task lies ahead.

It was thumbs up from the Taoiseach and other Ministers as they arrived for the meeting earlier.

Justice Minister Dermot Ahern said it was getting more difficult to find the cuts, saying the Government is now closer to the bone in many areas.

A billion of the savings could come from the capital budget.

Ministers are expected to today rubber stamp a new five year 40 billion capital investment programme that will no doubt see some projects shelved due to lack of funds.