(MENAFN- AFP) British finance minister George Osborne will on Wednesday unveil his annual budget, with more austerity pain as the global economic outlook darkens but with more cash for education and infrastructure.
Most economists believe the Chancellor of the Exchequer will likely avoid any major shocks, with three months to go until Britons vote on EU membership in a crucial referendum.
The Conservative government's finance chief will deliver his 2016 taxation and spending plans before parliament at 1230 GMT, with another £4.0 billion ($5.7 billion, 5.1 billion euros) of cuts expected.
Osborne has already indicated that more heavy spending cuts are on the cards in this week's budget, amid ongoing global economic turmoil in China and the eurozone.
"The world is a more uncertain place than at any time since the financial crisis and we need to act now so we don't pay later," the Chancellor told BBC television over the weekend.
"That's why I need to find additional savings equivalent to 50 pence in every £100 the government spends by the end of the decade because we have got to live within our means to stay secure and that's the way we make Britain fit for the future."
Prime Minister David Cameron's governing Conservative party is aiming to clear the deficit by the end of the current parliament in 2020.
The Chancellor will also reveal the latest official forecasts for British economic growth, amid jitters over the nation's looming June 23 referendum on EU membership.
"Most attention will be on this afternoon's budget speech by Osborne, where he will have to navigate a tricky path in looking to keep his current spending plans on track, while not antagonising too many voters ahead of the June referendum vote," said CMC Markets analyst Michael Hewson.
Cameron is leading the battle to keep Britain in the European Union, but several key members of his Conservative party -- notably Mayor of London Boris Johnson -- have joined the Leave campaign.
Osborne was meanwhile expected on Wednesday to green-light major railway developments in northern England and in London, in a £300-million ($431-million, 387-million-euro) infrastructure investment package.
The Chancellor will also reveal a £1.5-billion package of extra funding for education in Wednesday's budget.
As part of the plan, he will announce that by 2020 every state school in England will become a self-governing academy -- a category of school that is independent of local authority control.
The funds will also be used to lengthen some secondary school opening hours for additional lessons or extracurricular activities.
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