The Department of Finance has revealed the submissions it made to 'An Bord Snip Nua' for potential savings in public expenditure.
The Special Group on Public Service Numbers and Expenditure Programmes, which was chaired by UCD economist Colm McCarthy, delivered its report to the Government in July.
The report recommended €5.3bn in potential savings and targeted the big items of spending, such as health, education and social welfare.
The documents show that some proposals made by Finance were a lot more radical than those contained in the final McCarthy report.
It has been revealed that the department suggested welfare rates be cut next year to reflect reductions in cost of living in its submission to the McCarthy group. Failing that, it proposed freezing rates in 2010 and 2011.
The McCarthy report proposed cuts of 5% to social welfare rates which would save €850m a year.
Many key recommendations by the department were also included in the McCarthy report such as the phasing out of double welfare payments.
Health
One of the recommendations made in relation to the health sector was the closure or downgrading of inefficient hospitals.
The submission claimed that rationalising hospitals could save €500m, which could be reinvested in developing primary care.
Another option proposed in the submission was that older people be charged the full economic cost of homecare and home-help packages, which would save €300m a year.
However, this option was described as 'high-risk' given the vulnerable nature of the client group and it would also require legislation.
The submission also questioned the rationale for the continued development of four major hospital projects.
These included the proposed National Children's Hospital at the Mater Hospital site and the new National Rehabilitation Hospital in Dublin.
Education
Elsewhere, many of the key education cuts proposed by 'An Bord Snip Nua' were suggested to the body by the department.
The documents show that some proposals made by the department were more radical than those contained in the final McCarthy report.
Among the recommendations was a further reduction in teachers and the number of Vocational Education Committees.
The department also suggested cutting funding to primary schools by 22%, but the McCarthy report favoured a 10% cut.
It also suggested cutting the subvention of fee-paying schools by half, while the group suggested cutting it by one quarter.
The Department of Finance also made radical proposals on third level fees, as it suggested restoring them for all students not in receipt of a grant at present.
Other submissions concerned the continued existence of the reserve Defence Force and the air service used by Government Ministers.
