AlQa'dah 25, 1433, Oct 11, 2012, SPA -- The government of bailed-out Portugal approved a draconian austerity budget early Thursday, despite massive opposition against its spending cuts, dpa reported. Prime Minister Pedro Passos Coelho's government approved the 2013 budget and corrections to this year's budget in a 20-hour meeting. It did not give details about the budget, but it is known to include hikes in income tax and other taxes to replace a rise in workers' social security contributions which was cancelled after widespread protests. The budget was expected to be the most austere in decades. The government said the budget was aimed at satisfying the requirements of the European Union and the International Monetary Fund, which have granted Lisbon a bailout worth 78 billion euros (100 billion dollars). The EU and IMF have recognized Portugal's austerity efforts by relaxing its budget deficit targets. Passos Coelho is now struggling to achieve a deficit of 5 per cent of gross domestic product this year and 4.5 per cent in 2013 - up from the previously agreed 4.5 per cent and 3 per cent. In 2011, the deficit stood at 4.4 per cent, but that level was only reached thanks to an exceptional transfer of banks' pension funds into state coffers. The budget needs to be approved by parliament, which is due to receive it by October 15. Passos Coelho's centre-right Social Democrats and their conservative allies have an absolute majority in parliament. The government has faced massive demonstrations against its austerity policies, from the left-wing parliamentary opposition, and entrepreneurs. The trade union confederation CGTP called a general strike for November 14.
