Demonstrators started a fire outside the Portuguese parliament on Monday night as anti-austerity protests continued in Lisbon.

The draft budget for 2013 is one of the harshest in the country's recent history. Finance Minister Vitor Gaspar confirmed the average income tax rise would increase from 9.8% in 2012 to 13.2% next year.

About 2,000 protesters gathered outside parliament to call for the resignation of the government.

"The people united will never be defeated," they chanted.