Ministers are grappling with an unexpected €2.5bn overspend while finalising their 2017 budgets, Nos reports.

Sources have told the broadcaster the pay deal finally agreed for civil servants is costing more than expected, forcing ministers to find an extra €2.5bn in the year ahead of the general election.

VVD and PvdA negotiators are set to meet later today in an effort to finalise their spending plans, which will be presented on the third Tuesday in September.

Government spending is tied to inflation which has barely risen, meaning alternative sources have to be found to make up the shortfall. Ministers are keen to avoid making cuts ahead of the election, set to take place early next year.