Two Government departments have suggested there will be “implications” for their sectors arising from a €446 million levy on spending to pay for a black hole in the Department of Education. Others have indicated that there are already significant savings programmes under way as the process to identify cost efficiencies moves to the next level. Departments had to submit plans to generate millions of euros worth of savings to the Department of Public Expenditure and Reform (DPER) on Friday, which is insisting the overspend in education be funded through efficiencies across the board rather than through a bailout.Government insiders say the savings agenda is primed to cause a summertime row with some Ministers deeply concerned about its impact.The Department of Agriculture said it was engaging with DPER and “examining the specific implications of the levy” with spending officials, while the Department of Further and Higher Education said it will be outlining its “ambitious reform agenda” and “identifying the implications of application of a levy” as part of the wider budgetary process. These two departments have been asked to generate €26 million and €53 million respectively. The largest savings are being sought from the Department of Health, which has been asked to find €175 million in savings, while €39 million has been sought from the Department of Justice.A spokesman for the Department of Health said its response to DPER outlines broad programmes of financial reform and savings measures already under way. It said it would continue to work with Minister for Public Expenditure Jack Chambers during the Budget 2027 process.The Department of Justice said it was in discussions in relation to the expenditure levy in advance of submitting its proposals to DPER on Friday. Sources in the Coalition predicted that departments would not willingly offer up much in the way of cuts, and would likely warn that any adjustments could have an impact on frontline services. One Government source, speaking on the condition of anonymity, predicted that the issue would cause significant tensions over the summer break, including at Cabinet level. “This will travel on into Cabinet meetings. The Taoiseach will be able to see exactly what this is doing and what grief this will draw down on the over the coming quiet period.”The person added that Taoiseach Micheál Martin and Chambers would not “appreciate” the impact of the issue until political footsodliers and grassroots operatives began to feel the heat: “Then they’ll see the county councillors and the backbench TDs coming at them.”Minister for Higher Education James Lawless is believed to have told DPER that reforms under way would not guarantee delivery of the department’s €53 million expenditure levy for this year’s budget. Several Government departments told The Irish Times on Friday that proposals for generating savings and efficiencies would be considered as part of the estimates process leading up to the budget in October.