The Minister for Finance, Mr McCreevy, has come under renewed pressure after admitting the Government's finances have deteriorated further.
Mr McCreevy said tax revenues for the year would be further below target than was expected, following "quite disappointing" figures in July and August.
Facing questions about the inadvertent release of a secret Department of Finance memorandum, Mr McCreevy rejected charges that he misled voters.
"Going forward, it is quite likely that the budgetary position is going to be even more difficult than the budgetary position outlined in that memorandum," he declared.
The latest disclosure poses a serious question over Mr McCreevy's declaration that the Government's budget will be in surplus by the end of the year, and threatens even bigger-than-predicted de- ficits in 2003 and 2004.
Dismissing Opposition calls for his resignation, the Minister said he had repeatedly warned during the election that all promises depended on the economy growing by 5 per cent and more.
Rounding on the Minister, Fine Gael demanded information under the Freedom of Information Act from all government departments about discussions on spending changes since January.
The Fine Gael leader, Mr Enda Kenny, warned there was now "every chance" that voters could reject the Nice Treaty in retaliation but he called for a Yes vote in the upcoming referendum.
Labour's deputy leader, Mr Brendan Howlin, said it was "pathetic" that the Minister's "defence to the charges levelled against him is that things are worse than he thought in June".
The Minister for Foreign Affairs, Mr Cowen, informed Cabinet colleagues yesterday about the "unfortunate circumstances" that led to the accidental release of the Department of Finance document.
Privately, government sources indicated that the memorandum was mistakenly photocopied by a Foreign Affairs official dealing with a Freedom of Information Act request from Sunday Tribune journalist Rachel Andrews.
Meanwhile, newly elected Fianna Fáil TDs are today expected to push for action on promises last week to keep backbenchers better informed.
The meeting between the new TDs and the Government Chief Whip, Ms Mary Hanafin, and the parliamentary party chairman, Mr Seamus Kirk, was arranged two weeks ago.
McCreevy says next year will be more difficult; State facing €1bil- lion tax shortfall; Health strategy is "in tatters" over Government cuts, says Labour:
