Spain is set to increase its taxes on alcohol and tobacco as well as imposing a new tax on sugary soft drinks.
The new albeit minority government finally in power is in a race to honour its pledges to Brussels to reduce its deficit and its debt.
At the same time, however, there are calls from the parliamentary opposition to put an end to years of austerity measures.
The finance minister, Cristobal Montoro, wants to cut the country’s deficit from 5.1% to 4.6% of GDP this year and hopes to reduce it further to 3.1% next year.
EU regulations impose a limit of 3% and Spain has been under concentrated monitoring by the European Commission for its high deficit.
Through a combination of increased taxes and government saving, officials hope to raise a total of €7.5 billion.
"Who are we asking to make that effort? Families, the self-employed, small and medium-sized enterprises? Absolutely not," Montoro said.
The government will instead be asking those with significant financial power such as large business concerns.
He said Spain's corporate tax would remain unchanged at 25%, but they will receive fewer tax exemptions and rebates. The changes should realise about €4.3 billion.
The new administration is also hoping that the buoyant economy will continue to grow next year as this will contribute to reducing Spain’s troublingly high unemployment as well as reducing the budget shortfall