Portugal plans biggest spending cuts for 50 years
http://www.bbc.co.uk/go/rss/int/news/-/news/business-14737176 Version 0 of 1. The Portuguese government is planning the country's biggest spending cuts in 50 years, a move its finance minister described as "unprecedented". Vitor Gaspar said the centre-right Social Democratic administration would reduce public spending from the current 44.2% of Portugal's annual economic output or GDP to 43.5% by 2015. The government is aiming to meet its budget deficit reduction targets. These were agreed when Portugal required a bailout in May. The country is now continuing to receive a total 78bn euros ($112bn; £70bn) from the European Union and International Monetary Fund. Like neighbouring Spain, Portugal has seen a number of public protests against government spending cuts. Mr Gaspar also announced plans for higher tax rates for the highest-earning companies and individuals. |