slash public spendinG: For the first 11 months of 2008 the Government spent almost €49bn but took in just €38.8bn in taxes. In other words, they are only raising 79c in taxes for every euro it spends. With borrowing already soaring and the economy on its knees, more borrowing or higher taxes will make things even worse.

Bin benchmarking: The first benchmarking report pushed up public sector pay by almost 9pc. The public sector unions were supposed to deliver improved efficiency in return. It hasn't happened.

By scrapping benchmarking and reclaiming these wage increases, which should never have been granted, the Government would save €1.75bn in a full year.

Reduce public sector numbers: When the eircom and Aer Lingus privatisations, the sale of ICC and ACC, and the run-down in the Defence Forces are taken into account, the underlying number of public sector employees has risen by just under 100,000 to 372,000 since 1997, an increase of more than a third. What do all of these extra workers actually do? Has there been a one-third improvement in the quality of our "services"? Numbers should be capped at 300,000. This would save almost €3.7bn.

Cut the number of government departments and agencies: Earlier this year, there was much controversy when it emerged that there were now more than 1,000 agencies or quangos. The Government has now promised to reduce this number. All well and good but it should also take a long hard look at every department. What exactly does the Department of Community, Rural and Gaeltacht Affairs exactly do? Is it necessary to have a stand-alone Department of Agriculture when there are fewer full-time farmers than teachers? Couldn't the Department of Communications, Energy and Natural Resources be folded into the Department of Finance?

Tear up the national pay deal: The deal, which was agreed between the Government, employers and unions last September, is a dead letter outside of the public sector. By walking away from the deal now, the Government would save up to €1.16bn in a full year.

Make public sector workers pay for their pensions: As well as being the best-paid workers in the economy, with wages of more than €940 per week, public sector workers enjoy bullet-proof, inflation-linked pensions. With most private-sector pensions schemes on the brink, pensions apartheid is no longer justifiable.

Charging public sector workers 8pc of their salary for these pension rights would yield €1.1bn net of tax relief.

No more automatic spending increases: In the private sector, most managers have to manage their departments with the same amount of money they got last year. This so-called zero-based budgeting forces private-sector managers to constantly seek out efficiencies. Meanwhile day-to-day spending has increased by 8-10pc in the public sector in recent years. Starting zero-based budgeting in the public sector would save at least €2.7bn a year.

Scrap unnecessary capital spending: While we need those new roads, is all of the €8bn which the Government plans to spend on capital projects in 2009 such good value? Do we really need Metro North? Some of the other 'capital' spending planned in the National Development Programme between now and 2013, including €49.6bn for 'social inclusion', €33.6bn for 'social infrastructure' and €25.8bn for 'human capital', also looks highly suspect.

Trimming €1bn from annual capital spending by cutting back on these peripheral headings is eminently achievable.

Undo all of last October's tax increases: Even when double-counting is taken into account, these measures would knock at least €10bn off the Budget and bring Government spending back into line with tax revenue. This would allow the Government to reverse all of last October's tax increases, which were said to raise €2bn in a full year, and still keep borrowing to a minimum.

Abolish top rate of VAT: As the queues of Southern-registered drivers trying to get off the Newry bypass show, a 6.5pc VAT gap between the Republic and Northern Ireland is not sustainable. Lenihan must replace the 13.5pc and 21.5pc VAT rates with a single 13.5pc VAT rate. This could cost up to €3.2bn in a full year, but the real cost would be far less as Southerners did more shopping at home, and Northerners lured south by a lower VAT rate.

- Dan White