The First Minister Peter Robinson has said the Executive will be rigorously examining its future spending, during a so-called 'away day' on Tuesday.
Mr Robinson was speaking after the 10th plenary meeting of the North-South ministerial council at Farmleigh house in Dublin.
He warned that there would be no "sacred cows" in terms of cuts.
Read Jamie Delargy's business blog: Forty per cent cuts?
The DUP leader said ministers will be looking at every aspect of spending and everything would be examined "closely."
His announcement follows the disclosure at the weekend that Chancellor George Osborne ordered Government departments to draw up plans for budget cuts of up to 40% as they prepare for the spending review in October.
Taoiseach Brian Cowen said it was vital that Northern Ireland and the Republic of Ireland worked together to generate economic growth and jobs.
"I welcome the significant co-operation already under way and look forward to our discussions on how to build on this further to promote growth and employment throughout the island of Ireland," he added.
"The ongoing work of the North-South ministerial council can play an increasingly important part in our strategy for economic recovery and can realise benefits for all of the people, North and South."
The DUP leader also met with Irish President Mary McAleese.
"The meeting this morning with President McAleese was part of that normalisation process and the respect agenda recognising the constitutional status of our two countries," Mr Robinson said.
"It was a useful opportunity to discuss a range of issues with the President and to build the kind of normal working relationship which any two neighbouring jurisdictions should have."
Meanwhile, Deputy First Minister Martin McGuinness hit out at Stormont Health Minister Michael McGimpsey who did not attend the North-South Ministerial council meeting.
"I also want to put on record my disappointment that our health minister had not been at this meeting," Mr McGuinness said.
"In fact there have been quite a number of meetings of the North South Ministerial Council that he has not attended and I think that's a mistake given that we are talking about these important issues, things like child protection, the whole issue of radiotherapy and many other issues that are relevant to his department."
The North-South Ministerial Council announced that a new radiotherapy centre will be established at Altnagelvin Hospital in Derry.
A spokesperson for the Department of Health, Social Services and Public Safety said: "NSMC Plenary meetings are, as the name suggests, meetings open to all members of the North South Ministerial Council.
"However, from the outset it was clear that all Ministers are not expected to attend these meetings unless they have specific input to them.
"Minister McGimpsey has attended all five NSMC sectoral meetings, and plenary sessions when able. He provided briefings for this meeting in Dublin."
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