Finance Minister Elena Salgado said Wednesday that the extra money would not affect the government's 2011 reduced spending plans but would be offset by unspecified savings in other sectors.

Salgado also ruled out any tax increases, as had been suggested recently by Development Minister Jose Blanco.

Blanco said the ¤500 million will help finish some 50 projects.

Spain initially planned to cancel or delay a fifth of public work projects in order to cut spending by ¤15 billion ($19 billion) by 2012 to rein in a swollen deficit.

But the government said recently reduced borrowing costs meant there extra money was now available.