IMF: Ireland should press ahead with €3.1bn Budget cuts

The International Monetary Fund said Ireland should stick to the terms of the bailout agreement and cut €3.1bn from the Budget in October.

The IMF said it was not its job to dictate the terms of the Budget, but said that Ireland needed to continue its track record of fiscal consolidation.

That meant going ahead with the planned tax increases and spending cuts.

The IMF was speaking as the international lenders to Ireland gave the green-light on their latest review of the bailout agreement.

It also urged the Government to accept assistance from the organisation when the bailout ends later this year.

Minister for Finance Michael Noonan said that there is no scope for easing up on austerity in October's Budget as a result of the deal on the Anglo promissory note and the EU portion of our bailout.

The two separate agreements mean Ireland will have to borrow €40bn less over the next decade.

Michael Noonan said that Ireland's deficit remains the same and we have committed to certain reduction targets.

He says the two agreements will have an impact on future Budgets - but only in the long term.