SINGAPORE, May 24 (Reuters) - The German government is to cut its budget by 10 billion euros ($13 billion) a year until 2016 in order to set an example for the euro zone and to comply with the budget deficit rules in the constitution, the Financial Times reported on Monday.

Citing unidentified government officials, the FT reported that the cuts could be achieved through tax increases as well as reduced spending, despite a promise by the coalition government to put tax cuts at the centre of the plan.

The government would mainly target lower subsidies for Germany’s federal states as well as abolish tax exemptions and allowances, the newspaper said. (Reporting by Jan Dahinten; Editing by Tomasz Janowski)