The North's Finance Minister used his last budget before nominating a successor to signal a root-and-branch overhaul of the North's budgetary mechanisms.
Mr Mark Durkan said yesterday he wanted to see "the hand-me-down" mentality that went with direct rule ended.
He was speaking at a press conference following his submission to the Assembly of the revised budget for the next financial year. Assembly members will debate and vote on the budget next Tuesday.
The Treasury in London has announced a spending review for the UK next year, which in turn will trigger a review of allocation and spending for the North's Executive.
Yesterday, Mr Durkan indicated that the so-called Barnett formula, which allocates public spending allocation to Northern Ireland on a per capita basis, needed to be changed because it was based on a population count rather than on the needs of that population.
He warned that such a review would not be a one-way street.
While he hoped for a greater spending allocation based on higher levels of need in the North, he pointed out that in terms of domestic rates and public utility charges, the North was under-charged when compared to the rest of the UK.
More funding from the Treasury could be matched by demands for higher domestic rates and water charges in the North.
"I have tried to issue reality checks to the Assembly and others. We have to make sure we have our case prepared," he added.
Mr Durkan said next year's spending review, which would come into effect for the 2003-4 financial year, would increase the Executive's influence over the allocation of funds from London to the various departments in the North.
He said it was planned to issue departments with indicative allocations which may be lower than current funding levels and that the Executive would reserve the power to supplement those allocations.