A government minister insists the cost of installing water meters around the country will come in at or below its budget.

It emerged yesterday that an initial figure for the job put the cost at nearly €432m.

However the final amount allocated was more than €100m higher.

It emerged yesterday that Bord Gáis underestimated the cost of the Irish Water metering programme as part of a detailed breakdown which they provided to the government 18 months ago.

In the figures from May 2013, the estimate of the entire cost of the metering came to €431m. However, just weeks later it emerged that the final cost was €539m.

Transport Minister Paschal Donohoe told the Pat Kenny Show here on Newstalk that the lower figure was only an estimate.

He believes the actual budget amount will be met.