The government is budgeting to spend in excess of 60bn next year with increased expenditure being marginally ahead of the rate of inflation.

The spending figures to be published on Thursday will also show that 2 in every 5 spent by the government goes to the public sector wage bill.

The estimates are in effect the first half of the annual budgetary process with taxation changes and social welfare increases to come on budget day on 6 December. This week's spending announcement and next month's budget will be followed by the publication of the latest national plan in late January which will set down development strategy until 2013.

Government advisors have been listening carefully in recent months to the issues raised by Fianna Fail backbenchers. The estimates are expected to contain spending measures which attempt to eliminate issues which have been causing local constituency problems. In education there will be renewed concentration on disability and special-need programmes while the third level sector will receive a boost with funding for the science and technology strategy. The estimates will also show that the government remains committed to meeting its overseas development aid target of 0.7% of GNP.

The two main opposition parties have also been working closely on an alternative economic programme with key Fine Gael and Labour advisors near agreement on a joint document which will also be published shortly.