(MENAFN) The Spanish government revealed a new package of austerity measures to reduce the country's deficit and save USD126.3 billion by 2014, reported Xinhua News.
The government set 2013's deficit target at 4.5 percent and 2014's at 2.8 percent.
It said that tax increases and expenditure reductions are expected to save the country USD80.49 billion, with USD43.34 billion to be generated from hikes in sales taxes.
Concerning the benefit program for unemployment, which is due to expire later this month, the government had not yet taken a decision whether to extend the monthly payment of nearly USD495.35 to those without a job for a long time.
The Spanish National Statistics Institute said that Spain's jobless rate hit 24.63 percent in June, the highest rate in Europe.
It is worth noting that deficit of an EU member should not exceed 3 percent of its gross domestic product (GDP), however, Spain's 2011's deficit hit 8.9 percent of GDP.
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