Last updated: February 17. 2013 10:16AM - 3 Views

Demonstrators hold Portuguese flags outside the parliament in Lisbon at the end of a protest march against unemployment organized by workers' unions Saturday, Oct. 13 2012. Unemployment figures in Portugal have soared since the introduction of austerity measures to fight the country's debt crisis.  (AP Photo/Armando Franca)
Demonstrators hold Portuguese flags outside the parliament in Lisbon at the end of a protest march against unemployment organized by workers' unions Saturday, Oct. 13 2012. Unemployment figures in Portugal have soared since the introduction of austerity measures to fight the country's debt crisis. (AP Photo/Armando Franca)
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(AP) Portugal's government is putting the finishing touches to a draft budget for next year which is expected to be one of the toughest in the country's recent history.


The finance minister has said the spending plan will include an "enormous" increase in taxes as well as further cuts in public services and civil service layoffs.


Portugal needed a 78 billion ($101 billion) bailout last year to avoid bankruptcy when it was engulfed by the eurozone's debt crisis.


But it has struggled to reduce its deficit because the cuts have deepened a recession, sending unemployment to a record 15.9 percent.


The center-right government's austerity policies have triggered broad public outrage and brought tensions between the two parties in the governing coalition.


The government was due to publish the budget draft Monday.


Associated Press
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