Spain’s Socialist government has published tax increases intended to raise an extra €11bn ($16.16bn, £10.13bn) a year and cut a budget deficit swollen by the economic crisis, but failed to convince opponents the measures would be enough to rescue the public finances.

Before the summer, ministers insisted Spain did not need drastic tax increases. But on Saturday the cabinet bowed to the inevitable and approved what it called an “austerity” budget for 2010, outlining spending cuts and increases to income tax, value added tax and the tax on capital gains and interest income.