Savings of at least £300,000 will have to be made at Teignbridge Council if the authority is to avoid dipping into reserves next year.
Pressure on the budget has come from a number of sources including reduced interest which is £65,000 less than expected.
Money from the sale of council assets which was to have been in the bank by now has yet to materialise.
Car parking income has fallen by £128,000 although October's figures suggest a glimmer of hope.
The council had also put aside £276,000 to cover the cost of planning appeals and 'external fees' but that bill is now expected to rise.
Fewer planning applications than predicted mean that income from fees is £81,000 below target.
An administrative change which meant staff salaries were paid from revenue instead of capital has also taken its toll to the tune of £102,000.
According to a report due to go before the council's executive committee next week officers are 'scrutinising all budgets and expenditure... to bring further saving suggestions'.
The thorny issue of concessionary bus fares and the unknown cost to the district is described as 'critical'.
Although the bill for this year looks set to be covered by the £2.3million allocated, changes by the secretary of state could mean that Teignbridge will have to make a 'substantial contribution' towards last year's costs.
The council is also to consider its investment strategy in the face of collapsing global markets.
In order not to expose the district to excessive risk it will consider reducing the amount it saves with any one organisation from £3 million to £2 million.
Finance spokesman Cllr Sally Morgan said: 'Teignbridge's prudent investment policies helped it avoid issues relating to the recent events in Iceland and these new amendments to our strategy are designed to maximise the return on our investments while minimising risk.'
Councillors will discuss the issues on Monday.