The money was set aside by the Government last year as a buffer for exceptional circumstances.
Minister for Finance Paschal Donohoe now intends to use that money to fund spending in the budget.
Despite the approval from Cabinet, it will also require the go-ahead from the Dáil on the day of the budget next Tuesday.
In a statement issued today, Mr Donohoe said: “The drawdown of the fund requires a resolution to be passed by Dáil Éireann, following a proposal made to the House by me as the Minister for Finance.
"My intention is that a motion to this effect would be introduced on budget night, October 13th. Subject to approval by Dáil Éireann, shortly thereafter I will direct the NTMA to transfer the €1.5 billion to the Exchequer.
"We are in exceptional times. The fact that our public finances were so carefully managed in recent years put us in a good position and allowed us to provide for such contingencies. It is appropriate now that we release the funds that are at our disposal, as we work to meet the needs of our people, support businesses and strive towards stabilising our economy once again.”
