IMF Recommends Further Government Spending Cutbacks

A former Deputy Director at the IMF says he believes the latest proposals from the Fund for the Irish economy make sense.

The IMF yesterday called for wider reform of the social welfare system, warning that maintaining universal supports and subsidies is difficult to justify given our budget constraints.

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Among the proposals is a recommendation that child benefit and medical cards be means tested.

Donal Donovan is an Adjunct Professor at the University of Limerick and former deputy director at the IMF – he says there are some good ideas in the report, but nothing’s set in stone.