Greek cabinet approves 2012 draft budget

The Greek cabinet has approved a measure to begin reducing the number of state workers, a contentious part of an austerity plan aimed at freeing up EU and IMF loans.

The plan, endorsed on Sunday, creates a "labour reserve" allowing state workers to be placed on partial pay and be dismissed a year after.

The government has said it will put 30,000 workers in the reserve by the end of this year.

The finance ministry said in a statement after Sunday's cabinet meeting that the 2012 draft budget, under which redundancies will be catered for, had been approved.

"The budget draft will be submitted tomorrow to parliament," the statement said.

Al Jazeera's Paul Brennan reports.