Spain Debt to Hit 85.3% in 2012, 90.5% in 2013

Spain's public debt is set to reach 85.3% of gross domestic product in 2012 and 90.5% in 2013, well above previous forecasts, according to figures in a draft budget submitted to parliament on Saturday.

The budget approved by Prime Minister Marian Rajoy's right-wing cabinet on Thursday, tightens austerity in the teeth of growing protests, easing the path to a widely expected sovereign bailout.

"The budget must act as a lever to overcome the crisis and restore confidence in Spain," Budget Minister Cristobal Montoro told a press conference Saturday.

"It must open the way to growth and job creation in the country."

The cash-strapped government estimates total funding requirements this year to reach 207.173 billion euros gross as it struggles to service its debt amid a massive financial crisis.