Members voted by 15 to 14 against the overall package, after two separate ballots.
The detail in the budget is drawn up by management – and parties on all sides of the Chamber appear to be divided on the figures.
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The Council now has two weeks to hammer out an agreement or it faces being dissolved and an administrator appointed to run the finances and services of the city.
Tipperary County Councillors gather at the Civic Offices in Nenagh for their annual budget meeting next Monday.
The 40 Councillors will meet at 10am to try to agree on a budget for the coming year.