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2 February 2011
Last updated at 05:10 ET
The government's planned spending cuts could be "formidably hard to deliver", according to the independent think tank the Institute for Fiscal Studies (IFS).
The warning comes in its Green Budget, which aims to assess the government's position ahead of the Budget.
It predicts that government borrowing will be less than the Office for Budget Responsibility (OBR) has forecast.
However, it urges the chancellor "resists the temptation to engage in any significant net giveaway".
It also asks the government to consider standby proposals for dealing with the public services.
The IFS says "having alternative plans to hand could prove useful".
It warns that the economy might not grow as quickly as expected, and "even if it does, the public finance might not bounce back as strongly as it [the OBR] forecasts".
The IFS predicts that government borrowing in the current financial year will be 0.2% below the OBR's forecast.
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The warning comes in its Green Budget, which aims to assess the government's position ahead of the Budget.
It predicts that government borrowing will be less than the Office for Budget Responsibility (OBR) has forecast.
However, it urges the chancellor "resists the temptation to engage in any significant net giveaway".
It also asks the government to consider standby proposals for dealing with the public services.
The IFS says "having alternative plans to hand could prove useful".
It warns that the economy might not grow as quickly as expected, and "even if it does, the public finance might not bounce back as strongly as it [the OBR] forecasts".
The IFS predicts that government borrowing in the current financial year will be 0.2% below the OBR's forecast.
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