As the Foreign Secretary used a keynote Berlin speech to plead that EU budgets stayed "in touch with the real world", MEPs and the European Commission agreed a series of demands that will increase EU expenditure by £95 billion over the next eight years.
"People simply do not understand why there should be massive increases in the EU budget when all EU countries are trying to balance the books at home," he said on Tuesday.
"EU member states are €3.5 trillion (£2.8trn) more in debt now than when the last EU budget was negotiated. The EU budget has to reflect these changed facts."
David Cameron has threatened to veto a Brussels demand for over £80 billion in increases for the long-term EU budget running from 2014 to 2020 at a summit that has been scheduled next month.
Rejecting the Prime Minister's call for a long-term spending freeze, the European Parliament and Commission also tabled demands for increased expenditure in 2012 and 2013.
The Commission on Tuesday demanded a £7.3 billion spending increase by the end of this year to meet a funding shortfall, figures that are disputed by Britain and other governments.
Meanwhile, meeting in Strasbourg, MEPs voted to reinstate over £6.5 billion in funding that had been cut by national government from next year's budget.
The EU assembly also voted to support the commission's demand for an 11 per cent increase in the "multi-annual financing framework" (MFF) for 2014-2020 while warning Mr Cameron not to attempt an veto.Hannes Swoboda, the Austrian leader of the European Socialist Party, that includes Labour MEPs, warned Mr Cameron that if he succeeded in cutting long-term spending the parliament would use its own legal powers to impose an even higher EU bill for British taxpayers.
"If Mr Cameron threatens to use his veto, he should be aware that we can do it as well. The European Parliament is much stronger than Mr Cameron," he said.
If MEPs blocked the MFF, spending over the seven-year period would be calculated using the 2013 budget "ceiling" as a reference point, increasing the bill for governments from over £80 billion to almost £120 billion.Richard Ashworth, the leader of Britain's Tory MEPs in the European Parliament, attacked, Mr Swoboda's "threatening rhetoric". "We will not be cowed, but will continue to resist this folly with steady determination," he said.
"The UK taxpayer is being used as a cash cow by the EU," said Nigel Farage, the leader of Ukip. "The EU is one political club whose membership fee is becoming prohibitive."