Onchan MHK Zac Hall says he believes cuts in the Department of Education were never realistic.
Mr Hall was giving evidence at a sitting of the Social Affairs Policy Review Committee.
It was set up to investigate if the Department of Education's new policy on pre-school education is value for money.
Mr Hall was sacked from his position within the department after refusing to back then Education Minister Peter Karran on the privatisation of pre-school services on the Island.
He says he challenged the Treasury on the cuts being demanded.
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