TORFAEN council cabinet has approved plans to slash £9.2m from its £167m budget and make 80 staff redundant.
Large-scale cuts are expected in the areas of schools, housing and social care but all areas of council business will be affected by the cuts.
Council leader Cllr Bob Wellington said: "This has been our most difficult budget ever, set within a perfect storm of increased costs and a real term reduction in cash.
"Our aim is to protect valued services and jobs and while the budget proposals will require voluntary and compulsory redundancies; job losses are forecast to be lower than early predictions."
The council has pledged to work with trade unions to try to minimise the number of compulsory redundancies, through redeployment. Seven people are known to have volunteered for redundancy already.
It is also looking for people to volunteer for reduced hours, unpaid leave or unpaid sabbaticals or career breaks.
Consultation with those affected will last for 30 days. The social care budget will be reduced by £3.8m and housing by £1.9m.
But the council is also to increase the price of Meals on Wheels by 30p to save £100,000.
Staff reductions within education are expected to save £198,334.
Councillor Wellington added: " "I am conscious that residents are feeling the pinch of recession and face similar decisions to make ends meet. Quite simply, it is our duty to make sure that every pound is put to its best use."
Cllr Mary Barnett said: "It can be do-able this year but there are real fears for the future in areas such as education. We have found a sticking plaster for this year."
The plans will now be submitted to the full council on March 1 for final approval.
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