The Social Protection Minister says the cuts in October's Budget will be "significantly smaller" than €2 billion.
Joan Burton's comments come following the release of Exchequer and unemployment figures as well as economic growth data this week.
She also says the Government will be putting a greater focus on social recovery in the future, after the priority on economic recovery to date.
Meanwhile Minister Burton also says the free-travel pass for pensioners will not be revoked as part of the Budget savings.
Our News Correspondent Fergal O'Brien reports:
