The Greek Finance Ministry says it will miss a deficit reduction goal by nearly a full percentage point.

Markets around much of the world reacted negatively to the news Monday, fearing a Greek debt default might be inevitable.

Greece is struggling to prove to its lenders that it is cutting spending and raising revenue so that it can receive an $11 billion installment from last year's bailout. Greece says it will default on its loans if it does not get the money.

A Greek default could have serious consequences for the European Union and U.S. economies, along with much of the rest of the world.

The Greek Cabinet has approved a draft 2012 budget that includes a provision to eliminate 30,000 government jobs by either early retirement or firings by the end of next year. The move could save Greece an estimated $400 million. Details of the plan have yet to be announced. Athens will submit the entire budget package to parliament Monday.