Spain presents toughest austerity budget since Franco era The Spanish government has presented to parliament the country's most austere budget since the Franco dictatorship. Another round of cuts worth 27 billion euros is aimed at reducing Spain's huge debt, and follows other austerity measures that have already sparked street protests. The Budget Minister Cristobal Montoro said there was no other option. The government is trying to cut the annual deficit progressively, under the watchful eye of often sceptical investors. "The situation is difficult, very complicated and the government is aware of that, so that is why we are taking those decisions to overcome this grave situation," said Prime Minister Mariano Rajoy. Concerns over Spain's ability to control the deficit have had a negative impact on the markets and pushed up the country's borrowing rates, aggravating the debt problem. The fact that Spain has tipped back into recession only makes matters worse, as income from taxes is likely to fall, with expenses for welfare set to rise. More about: Economic crisis, Public deficit, Spain, Spanish economy