Planned schools investment - previously mooted to be worth over €900m - could be slashed in this month's budget, it has been reported.

It is believed around 70% of the funding has yet to be committed, only €278m worth of contracts have so far been placed.

The Department of Finance is hoping to save around €2bn of capital spending in the budget, meaning monies set aside for new school buildings could be put in jeopardy.

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It has been reported that most other government departments have managed to secure upwards of 80% of their budgets.

Other major state projects which remain uncommitted are the National Concert Hall, the National Children's Hospital, the Thornton Hall super-prison and three decentralised offices in Portlaoise, Mullingar and Carlow.

Around €656m of the total education capital budget is dedicated to primary and secondary school building projects, with the remaining €248m mainly going to the third-level sector.

Education Minister Batt O'Keeffe said the school building programme would create 3,300 jobs this year.

This was based on the assumption that one job would be delivered per €255,000 of investment.

But if two thirds of the capital budget is ditched, 2,300 of these jobs will be generated.

(PR/JM)