The €200,000 allocated for safety improvement works at Aghadoe junction near Killarney will just go towards the cost of preparatory work and designs fees.
A spokesperson for Kerry County Council said work to improve safety at the junction from Madam's Hill onto the main Killarney to Tralee road will cost significantly more than the €200,000 assigned.
The issue was raised by councillor Maura Healy Rae who told a meeting of Killarney Municipal District that accidents and near misses continue to happen at the site.
Councillors were told that proposals have been developed to mitigate safety at this location and they will be presented to elected members in April or May before finalising them.