Brief on Budget Cuts and Austerity Reforms in 2022-25 based on “End Austerity: A Global Report on Budget Cuts  and Harmful Social Reforms in 2022-25” by I. Ortiz and M. Cummins

This brief alerts to the dangers of the post-pandemic austerity shock. The brief presents a summary of: (i) the incidence of austerity cuts (or “fiscal consolidation”) based on IMF fiscal expenditure projections in 189 countries until 2025 and (ii) the main austerity measures being considered by Ministries of Finance and the IMF in each country, based on a review the latest 267 IMF country reports. Instead of harmful austerity cuts, governments must urgently identify alternative financing options to support populations in this time of multiple crises. For this, see the companion pieces “Brief on Alternatives to Austerity: Fiscal Space and Financing Options for a People’s Recovery” and “Brief on What Citizens Can Do to End Austerity?”.

Today the world faces an austerity pandemic. The high levels of expenditures needed to cope with COVID-19, the resulting socioeconomic crisis and other shocks due to structural imbalances combined with reduced tax rates have left governments with growing fiscal deficits and indebtedness. Starting in 2021, this initiated a global drive toward fiscal consolidation whereby governments began adopting austerity approaches exactly when the needs of their people and economies are greatest.

To read the full summary: click here

End Austerity: A Global Report on Budget Cuts  and Harmful Social Reforms in 2022-25

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