By Daniel Hunter
The worst of the UK's budget cuts are 'still to come', according to the Institute of Fiscal Studies (IFS).
In its 'Green Budget', which analyses issues and options ahead of the Chancellor's Budget next month, says there is still "a long way to go" for the UK's finances.
It said that £51.4bn worth of spending cuts need to be implemented during the next government to achieve George Osborne's targets of eliminating the deficit by 2020. But the planned cuts will only amount to £38.3bn.
The IFS claimed that the UK over the next four years is planning the biggest fiscal consolidation of any of the 32 most advanced economies in the world.
But overall, the IFS' Green Budget is positive about the outlook for the UK economy.
Andrew Goodwin, senior economist at Oxford Economics and co-author of a chapter in the Green Budget, said: "The prognosis for the UK economy is pretty upbeat."
Paul Johnson, director of the IFS, said: "Mr Osborne has perhaps not been quite such an austere Chancellor as either his own rhetoric or that of his critics might suggest.
"And he has cut departmental investment spending by only half as much as he originally planned.
"The public finances have a long way to go before they finally recover from the effects of the financial crisis.
"One result is that he or his successor will still have a lot of fiscal work to do over the course of the next parliament."
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