The leader of Fife Council has admitted agonising decisions will have to be taken as the authority struggles to balance the books.
David Ross spoke of his fears as he revealed that the Labour administration is to postpone publication of its draft budget from autumn to January just weeks before the budget is due to be voted on by councillors.
The local authority has already stripped £8.8 million this year from services including education, social care and transport, with controversial plans to close libraries among its cost-cutters.
As well as growing demands for social care services from an increasing elderly population, the council faces settling over 1,000 equal pay claims.
Mr Ross said it was impossible to make the savings still required without cuts to staffing and services.
He said: “We face a number of major uncertainties over the next few months that make the budget-setting process even more difficult than usual this year.”
Settling historic equal pay claims is thought to have cost North Lanarkshire Council around £75 million and Mr Ross said cases due to be heard in coming months for Fife could make a “significant call” on resources.
He also stressed the authority was constrained in its ability to raise additional cash by the council tax freeze and other requirements of the Scottish Government.
He said: “At the same time, the UK Government continues with its punitive welfare reform and tax credit changes that will significantly reduce the income of many families in Fife and increase the demand and strain on council services.”
Demand continues to grow for social care services and discussions are taking place with NHS Fife and the Scottish Government over their financial contributions.
A financial statement is to be made by the Chancellor George Osborne towards the end of the year, which has led to the Scottish Government delaying its financial statement for budget setting probably into the new year.
Alternatives to council tax to fund local government services are being considered by the Commission on Local Tax Reform, which is due to report by the end of next year.
Mr Ross said: “All of these factors make budget setting for the coming year even more uncertain than in the past.”
He also stressed the region had suffered a number of severe economic shocks over the past year, with the closure of Tullis Russell, Velux in Glenrothes, Tesco in Kirkcaldy, the announcement that Longannet is to close and of job loss at Havelock Europa.
Mr Ross issued his warning in a written report to Fife Council.
However, he was barred from delivering his presentation to the full council as the document was not published three days before the meeting as required by standing orders.
He said: “As a council we have tried to approach these challenges in a managed way.
“We have recognised that even without the financial challenge we face, there is a need to improve and transform the way we deliver services to meet changing needs and to put the emphasis on prevention and early intervention, in line with the recommendations of the Christie Commission.
“Financial constraints make this doubly difficult and it is recognised that it is impossible to take the required £77 million out of budget without this having a detrimental impact on services and staffing.”