The DfI has been told its day-to-day spending budget will be 14 per cent less than last year.
A spokesperson said the 2023-24 allocation did not recognise the one-off decision last year to use Translink reserves to help maintain services.
It also did not reflect the additional funding needed for energy and inflation, they added.
Streetlights could be turned off and public transport reduced to save money.
The cost of streetlighting has more than quadrupled, due to increased energy prices.
DfI has already reduced expenditure and raisinge revenue.
This includes increasing bus fares, increasing on-street car park charges in Belfast, Lisburn and Newry and increasing non-domestic water and sewerage charges.
It has also made additional savings being delivered by Translink and NI Water of £19 million.
The other options available to the department to reduce the remaining resource deficit of over £100m involve scenarios include:
No road gritting service provided this winter
Water and wastewater treatment services reduced
Community transport losing funding
Road maintenance and flood management reduced to emergency-only services
DfI’s capital allocation is £146m less than is needed.
A spokesperson said it faced “extremely difficult and unprecedented circumstances”.
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