(MENAFN) The Spanish government said that it would reduce 2012's budget by nearly USD36 billion, reported Xinhua News.
The government said that the aim of the move is to slash the public deficit from 8.51 percent of gross domestic product (GDP) to 5.3 percent by the end of the year.
It also said that budgets of government ministries would be cut by an average of 16.9 percent.
On the other hand, the government launched drastic measures to boost revenue that include reducing tax benefits to businesses, after raising income tax implemented in February, in addition to tax amnesty that lets tax evaders pay just 10 percent of irregular income received before 2011.
It is worth noting that the Spanish government will also increase electricity price by 7 percent, gas by 5 percent and butane by 2.9 percent.