The Finance Minister has said he believes the economy would be able to respond to the shock of a no-deal Brexit.
The Central Bank has previously warned more than 100,000 jobs are at risk in the medium term if the UK crashes out of the EU.
British Prime Minister Boris Johnson, meanwhile, has repeatedly insisted that the UK will leave on October 31st whatever the circumstances.
Finance Minister Paschal Donohoe today said the Government will have to decide in the coming weeks what scenario the budget should be tailored towards.
He acknowledged that the risk of a hard Brexit is "certainly at a higher level" than it was a few months ago - although also stressed it's not inevitable.
Minister Donohoe explained: "We will have to make a decision in the run-up to Budget 2020 about what is the most likely scenario that the country will have to deal with... then we can use our Budget as part of the response back to it.
"While we all know the consequences would be really big, that it would be a shock... it also one that at least economically I believe our country would be able to respond back to."
Speaking in Oxfordshire today, Mr Johnson claimed the EU should show 'common sense' on Brexit.
His government has repeatedly insisted the backstop to avoid a hard border must be dropped in any deal - a prospect the EU has firmly ruled out.
In comments to BBC, Mr Johnson argued: "We want a new deal - we think there is a good deal to be done.
"Of course we're preparing for a no-deal outcome... that's absolutely common-sensical.
Asked about his previous suggestion that the chances of a no-deal Brexit were a 'million to one', he responded: "I think if there is common sense and if there is goodwill on the part of our friends and partners - which I assume that there is - then that's absolutely right."
