Portugal's new economic package, which also includes a delay in investment and the sale of state assets to fix its finances, came just a week after fellow eurozone member Greece introduced similar unpopular measures.

But those who could best afford it would bear the added tax burden, Jose Socrates, the country's socialist prime minister insisted.

"This programme has been established along the principles of justice and equity in the redistribution of wealth," Socrates told reporters on Monday.

"There will be no increase in tax, with the single exception of income higher than 150,000, which will be imposed at the level of 45 percent," he added.

The aim is to get the public deficit -- the shortfall in the annual accounts -- back to 2.8 percent of Gross Domestic Product by 2013, under the European Union's three-percent limit.

Last year's deficit soared to 9.3 percent of GDP from 2.8 percent in 2008 as Portugal, like Greece and several other eurozone members, tried to pump-prime its economy in the face of the worst global slump since the 1930s.

Socrates added that other measures would also target individuals and businesses in the higher income brackets.

"The tax system that we had profited people with high incomes," he said. "We want to put an end to this injustice."

Finance Minister Fernando Teixeira dos Santos told reporters that the new stability and growth programme for 2010-2013 would, after local consultations, shortly be submitted to the European Commission.

"Through to 2013, increases in civil servant salaries, which were frozen in 2009, will be less than inflation," he said.

Only one official would be recruited for every two that left their posts, he added.

And since salaries and social services accounted for 75 percent of total public spending, he said, welfare payments would have to be limited.

Exceptional measures taken last year to offset the impact of the economic slowdown, most notably on unemployment and jobs for the young, would also be scrapped, Teixeira dos Santos added.

Greece has faced similar financial problems to Portugal -- but to a far more serious degree.

The 4.8-billion-euros (6.5-billion-dollar) austerity package the Greek government announced last week sparked widespread protests and strikes.

In Portugal too last week, tens of thousands of public sector workers went on strike, closing schools and hospitals in protest against the government's wage freeze and other austerity measures.

But the economic crisis in Greece has raised doubts about the credibility of the eurozone, with Athens demanding a concrete EU commitment to help it through the crisis.

Germany, the zone's biggest economy, has so far refused to make such a commitment.

And as some analysts have talked of a possible contagion effect from Greece onto countries such as Portugal and Spain, this has made their problems harder to resolve.

Teixeira dos Santos reiterated that the government would not increase taxes through to 2013, except on those earning more than 150,000 euros who would by then face a 45 percent tax rate.

Military spending will be cut by 40 percent to 2013, with the planned Lisbon-Porto and Porto-Vigo high-speed train links delayed two years to 2017 and 2015, respectively.

Privatisation should bring in an additional six billion euros, with the assets involved to be announced on March 25, he said.

With this extra income, the total accumulated national debt should be trimmed back from 91 percent of GDP in 2012 to 89.3 percent in 2013, the minister said. The EU limit for total debt is 60 percent.

"The plan has to be credible to restore confidence," Teixeira dos Santos said, stressing that the government was being cautious in forecasting growth of 1.7 percent in 2013, compared with 0.7 percent this year.

The minister, who serves in a minority Socialist government, called on the opposition to play a full part in a "national effort." Their support was fundamental to success, he said.

The main opposition Social Democratic Party declined to comment on the plan in detail but said it welcomed "adjustments made in line with proposals from other parties."