Portugal's government has announced plans to save around 800 million euros ($1 billion) this year - about 0.5 percent of its annual gross domestic product - by slashing expenditure on public sector staff, goods and services, according to AP.
The center-right government says the new austerity measures are needed to meet deficit targets stipulated by creditors who gave the country a 78 billion euros bailout two years ago.
The government is trying to plug a 1.3 billion euros hole in its budget after the Constitutional Court recently ruled that some of this year's austerity measures were unlawful.
Officials said Thursday the latest cuts will likely result in layoffs and prompt some public services to be scrapped.
Government minister Luis Sarmento said the steps "will place public services under great pressure."