Fears were expressed yesterday that Aberdeen City Council could face bankruptcy after it was revealed that it could have to make savings of £50m - almost double the original amount forecast.
The council became only the second local authority in Scotland to face a "best value" hearing by Scotland's councils watchdog earlier this year after its financial position was identified as being "precarious".
The council faced unprecedented public hostility after announcing that £27m of budget cuts, which will lead to school closures and will particularly affect the vulnerable and infirm, were needed to balance the books.
Yesterday, it emerged that, in a report due to be discussed by councillors tomorrow, the council's chief accountant will reveal the true figure for savings will need to be nearer £50m.
A freeze on recruitment and halting of major capital projects, including the building of a £53m community stadium, are among measures which could be taken to address the problem.
Yesterday's revelation followed a damning Accounts Commission report which said the council faced "extremely serious" challenges.
It sparked an angry response from Opposition politicians and trade unions to the ruling LibDem-SNP administration.
Labour councillor Yvonne Allan said: "The council is going from bad to worse. If push comes to shove the place could go bankrupt."
Another Labour councillor, Willie Young, said: "To have cuts of almost £50m is an absolute disgrace. They are asking the city to take a hit of 15% of its entire budget.
"This is going to mean job cuts, loss of services and it's almost impossible to see how it can be done."
Tommy Campbell, of the T&G Unite union, warned serious job cuts could ensue.
He added: "Either the ruling administration have known all along about this and have hidden it from us, or they are too stupid to have realised it.
"Either way they should do the honourable thing and resign and allow the people of Aberdeen a vote to decide what is best for the future."
Aberdeen Labour MP Frank Doran said: "A full statement is necessary from council leaders as to how these circumstances have come about, why these figures are only now available and who was responsible."
A council spokesman said there was nothing new in the figures and the body had always been open about the savings.
The Accounts Commission announced in March the council's finances were to be examined at a special hearing. The move led Labour Opposition councillors to accuse the LibDem-SNP administration of shaming the city.
The commission's announcement came amid protests from disabled and vulnerable groups in Aberdeen concerned at the cuts they faced in a £27m budget reduction.
The previous week the Controller of Audit published a report on best value and community planning at the council which indicated its financial position was "precarious".
In May, council chief executive Douglas Paterson, announced he was quitting his £120,000-a-year post minutes before the start of the Audit Commission's special hearing. He is due to leave on August 13.
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