Spain's newly-elected government said on Friday it would cut public spending by 8.9 billion euros ($11.49 billion) in 2012 for all ministries as part of an austerity drive to bring public finances back under control.

In its first decrees unveiled since taking power last week, Treasury Minister Cristobal Montoro said after a cabinet meeting the tax hikes would apply only in 2012 and 2013 and would be applied proggressively.

(Reporting by Elisabeth O'Leary; Editing by Martin Roberts)