MADRID (Reuters) - Spanish Prime Minister Mariano Rajoy told lawmakers on Thursday that his government would toughen up corruption laws and rules for the allocation of public contracts, in the wake of a corruption scandal.

Rajoy earlier said that accusations against himself and the ruling center-right People's Party in the affair were false.

He also said his government would carry on with an economic reform program and ruled out stepping down.

"Nothing related to this affair has stopped me or will stop me from governing," Rajoy said, speaking in Parliament to address questions about allegations the party illegally financed itself.

(Reporting by Andres Gonzalez, Writing by Sarah White, Editing by Fiona Ortiz)

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