Council chiefs face a “challenging” time trying to balance the books over the next few years.
“Ruthless” savings need to be made, according to a paper presented to councillors on Tuesday.
As much as £98 million might need to be cut by 2023, on top of the £86 million already saved since 2010.
Leader Elaine Murray said “This is a direct consequence of a UK Government policy on austerity and not because the council has been overspending or current capital projects.”
Finance boss Gillian Ross said the best-case scenario would see £64 million having to be cut from the budget over the next five years, with the worst case meaning £98 million.
If the council tax goes up every year, the range would be between £49 million and £89 million. And the situation would be made worse if more capital projects were introduced.
Councillor Archie Dryburgh said: “It’ll be challenging, no doubt about it.”