Public Expenditure Minister Paschal Donohoe is understood to believe the proposal is not targeted enough at the most disadvantaged children in society and feels there are better ways to address child poverty.
A senior Fianna Fáil source said: 'I don't think it can be afforded under the limitations of the Summer Economic Statement - which sets out spending levels for the budget.'
Social Protection Minister Heather Humphreys publicly said she is supportive of the baby boost payment and said she previously looked at developing a similar scheme.
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