The difference will be offset with cuts in other budget line items and with redistributions, Šušteršič said as he presented the bill to MPs.

This indicates that the government plans to stick to its target of reducing general government deficit to 3% of GDP this year from over 6% in 2011.

Šušteršič said the agreement with the unions showed that "a large part of the public" was convinced fiscal adjustment is necessary.

He reiterated that adoption of the bill was a matter of urgency, as Slovenia would otherwise risk getting into an "exceptionally difficult" situation.

The ensuing debate saw the coalition and opposition reiterate their long-held positions: the former deems the law urgent while the latter thinks it undermines welfare.

Spending needs to be brought in line with reality, said Marko Pogačnik, an MP for the ruling Democrats (SDS). Slovenia is and will remain a welfare state, he said.

Rihard Braniselj of the Citizens' List said the bill was a "reflection of the extraordinary circumstances" that the country is in.

The economic crisis is driven by debt and cannot be solved with borrowing, added Mihael Prevc of the People's Party (SLS).

The opposition Positive Slovenia (PS) praised the government and trade unions for having reached an agreement, but it said the measures were nevertheless bad.

PS deputy Jani Möderndorfer accused the government of destroying public schools and health, devaluing the rule of law and restricting access.

In similar vein, Social Democrat (SD) MP Andreja Črnak Meglič said her party was not opposed to austerity per se, but it rejects their scope and the methods the government has used.

Parliament started the reading of the bill after an all-day debate on the 2012 supplementary budget. The debate will continue on Friday, when MPs are expected to pass both bills.