Fine Gael today claimed a public-service reform programme like that introduced in Britain could save the Exchequer up to €3 billion.
Finance spokesmen Richard Bruton said a plan was badly needed to tackle the economy's "persistent slide into the mire of uncompetitiveness".
Mr Bruton was speaking at the publication of Fine Gael's Budget Perspectivesreport, which sets out what the party considers are the key issues facing the Minister for Finance ahead of next week's budget.
"The debt-fuelled property and construction boom over the last decade has provided unprecedented resources to the Exchequer which has been largely squandered by the Government," Mr Bruton said.
By contrast, Mr Bruton said, the UK government has instituted a reform programme that requires all public bodies to deliver efficiency gains of up to 3 per cent each year and reduce the number of administrative staff to free up resources for the front line.
"It have succeeded in reducing administrative staff numbers by 16 per cent as a result of their reform programme. This is the type of programme that we need to implement in Ireland," Mr Bruton said.
Mr Bruton urged Mr Cowen to insist that every public body deliver independently audited efficiency improvements of 2 per cent during the course of 2008.
He also suggested deferring the pay increases for high earners in the public sector until serious reforms have been delivered. "In addition we should refuse ministers additional funding unless they commit to matching targets that will be delivered in 2008," he added.
In its report, Fine Gael highlighted what it said was the rising level of taxation faced by individuals and households in economy and the loss of competitiveness by Irish firms which needed to be addressed in the Budget.
The party claimed the average tax paid per household has increased from €20,100 to €29,600 since 2002.
