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.