Colombia's president has unveiled plans to spend $1.2bn (�747m) on job creation, housebuilding, and better education and healthcare.

The spending package is part of President Alvaro Uribe's strategy to weaken support for left-wing guerrillas by improving living standards and social welfare.

The spending programme aims to create 500,000 jobs, helping reduce the unemployment rate, which is running at 15.5%.

We need to provide social sustainability to our democracy President Alvaro Uribe

"This government will put the same emphasis on social policies as it puts on security," said President Alvaro Uribe.

"We need to provide social sustainability to our democracy," he added.

Jobs will be created through a programme of public works which will include building 100,000 new homes and improving the South American country's road network.

Homes, health and education

The spending plan was announced after a 14-hour cabinet meeting over the weekend.

Uribe: promise of better living standards

The plan aims to boost the economy, which is forecast to grow by a lacklustre 2% this year.

About 9 million Colombians - roughly a quarter of the population - are expected to benefit from the programme, which includes primary education for 500,000 children and healthcare for 300,000 poor families.

Mr Uribe, who came to office in August, has promised to crack down hard on violence by left-wing rebels and right-wing paramilitary groups.

He has boosted defence spending by $1bn a year.

The president said he expected the bulk of the funding for the $1.2bn growth and social welfare package to come from taxation.

IMF deal hopes

Colombia's parliament last month agreed to tax reforms and changes to labour and pension laws which the government said would bring in an extra $800m a year in revenues.

The tax reforms had been proposed by the International Monetary Fund (IMF).

Mr Uribe's government hopes it will now be able to clinch a new $2bn loan from the IMF, possibly within weeks, and almost $10bn in other international loans.

"Colombians have made great sacrifices in passing the reforms," Mr Uribe said.

"Now it is time for national and international banks and for international lending bodies to provide lower interest rates for Colombia."

Thousands of people have been killed in violence linked to Marxist rebels, right-wing paramilitaries and government forces in Colombia's 38-year-old civil war.