AFP - Greece's economy will shrink for a fourth year running in 2012, contracting 2.5 percent, according to the draft budget the government submitted to parliament on Monday.

In the draft, the government said "the rhythm of the economy is expected to continue to be negative in 2012 before an expected recovery in 2013."

Finance Minister Evangelos Venizelos said the draft budget is "within the framework" agreed with the country's international creditors -- the European Union, the International Monetary Fund and the European Central Bank.

"The budget is backed by measures already decided and agreed, and which will have been voted by parliament before the end of October," Venizelos said.

The additional measures will be enough to "fully" plug a 4.3-billion-euro hole in this year's budget, the minister argued.

According to the 2012 draft, the Greek economy shrank 4.5 percent in 2010 and two percent in 2009.

Steep falls in household spending are slowing the economy with domestic demand set to drop 3.8 percent in 2012 after an estimated fall of 6.2 percent in 2011 while inflation is expected to ease sharply to 0.6 percent after 2.8 percent.

General government debt will jump to 172.7 percent of Gross Domestic Product or nearly 372 billion euros from the 161.8 percent or 356.5 billion euros pencilled in for this year -- taking Greece even further away from the EU limit of 60 percent.

On Sunday, the government put its public deficit forecast at 8.5 percent of GDP this year, way above the 7.4 percent agreed with the International Monetary Fund and European Union and on which critical bailout loans are tied.

For next year the government puts the public deficit at 6.8 percent, rather than the 6.5 percent agreed.

The revised data came as auditors from the EU and IMF spent the weekend trying to obtain the a more accurate picture of Greece's finances and forecasts.

They pressed the government to undertake further austerity measures to reduce spending and increase revenues.

Athens unveiled late on Sunday a plan to shrink its bulging civil service by 30,000 people by the end of the year.

The union representing civil servants, Adedy, on Monday said the plan was unconstitutional as ministry staff were made permanent over a century ago.

"Public services are already facing enormous operational problems due to staffing shortages, particularly in the fields of education, health and social security," the union said, warning of a "huge" social cost from the cuts.

The union has called a nationwide civil service strike on Wednesday.

A full general strike against the government's austerity policy will be held on October 19.