Northern Ireland's Executive is facing a funding shortfall that could lead to cuts in public services, DUP leader Gavin Robinson has warned.

Robinson said the region "cannot risk a second crisis" on its budget, coming after recent political strain over a parading dispute at Drumcree.

Secretary of State Chris Bryant last month made what was described as a "final offer" of £1.5 billion in extra funding over three years. He has directed officials to prepare contingency plans in case the offer is not accepted.

The Executive has not yet agreed a budget for the current financial year. All parties agree that additional money is needed to maintain public services.

Ministers met on Tuesday evening to discuss the situation. Finance Minister John O'Dowd said the Executive is seeking further clarification from Bryant and the Treasury, adding that he believes there is room for improvement on the offer.

Robinson said the additional £500 million offered for this year is insufficient and would lead to difficulties in public services, including an inability to meet public sector pay demands, unplanned redundancies, and a stagnation in service delivery.

He said the Executive is "constructively asking for a resolution" and called on the Secretary of State to engage with that approach rather than imposing a budget.

The budget process has been complicated by the short-term nature of recent budgets, which have often been set for only one year due to political instability.

This has prevented long-term planning, particularly in health, which accounts for half of the budget.

If the Executive fails to agree a budget, departments may authorise spending up to 95 percent of last year's levels, which in real terms amounts to an 8 percent cut due to inflation.

Bryant had set a deadline of October 1st for agreement before resorting to imposing a budget, though the Drumcree dispute has since shifted attention.

Robinson's comments underline the urgency of the financial situation. He said the public needs certainty and that the Executive is seeking a resolution that would allow it to balance the books.