BERLIN, Sept. 7 -- The German government on Monday unveiled its first overall plan to deal with the growing influx of refugees entering Germany.

The plan, introduced by German Chancellor Angela Merkel and Vice-Chancellor Sigmar Gabriel at a joint press conference here, includes increasing the federal budget and manpower resources for taking in refugees, as well as measures to speed up the processing of asylum applications.

Merkel told reporters Germany would add 3 billion euros (3.35 billion U.S. dollars ) to the 2016 federal budget and provide another 3 billion euros to states and municipalities to handle record numbers of asylum seekers.

The German government also wants to increase the foreign ministry budget by 400 million euros (446.6 U.S. dollars) for crisis management and prevention.

Under the plan, 3,000 more federal police will be added over the next three years. Besides, the German Federal Voluntary Service, in which people actively work to achieve social goals, is expecting up to 10,000 additional personnel.

In a bid to meet the growing need for refugee homes, the government plans to further promote social housing and is working on a law designed to accelerate the construction of refugee shelters.

While the German government vows protection for those in need, it is also considering implementing stricter regulations when it comes to benefits and rejecting asylum applicants to eliminate "wrong incentives".

Its new plan calls for replacing cash allowances given to asylum seekers at initial reception centers to be replaced as much as possible with non-cash benefits.

Additionally, three Balkan states -- Kosovo, Albania and Montenegro -- will be added to the list of "safe countries of origin". People who come to Germany from those countries are expected be sent back more quickly as the recognition rate of their asylum cases is very low.

Germany is bracing for an unprecedented influx of up to 800,000 asylum seekers this year as Europe grapples with its biggest migrant crisis since the Second World War. According to the German government, Germany is currently receiving 40 percent of all refugees in the European Union.

The package of measures introduced on Monday was reached between German ruling parties after hours of discussions, following a wave of nearly 20,000 refugees arriving in Germany from Hungary over the weekend.

The plans will be discussed at a meeting between German federal government and state authorities on Sept. 24 and be voted on by the German parliament later.

"What we are experiencing now will change the country in the coming years," Merkel said at the press conference. "We want that change to be positive and we believe we can make that happen."

The chancellor also called for European solidarity amid the current refugee crisis and reiterated her call for a fair distribution of refugees within the European Union.