4 October 2010, 18:14  Greek deficit to come under IMF target

The Greek government proposed more austerity in the draft budget for 2011 that it submitted Monday as it tries to trim the deficit further to meet the conditions of an international bailout. The government aims to trim the deficit to 7 percent of gross domestic product by the end of next year - lower than the 7.6 percent target set by the terms of the rescue package by the International Monetary Fund and eurozone countries. Finance Minister George Papaconstantinou had pledged not to impose any further salary cuts on civil servants in the budget. But more austerity is in store for Greeks as the government continues its efforts to trim a deficit that reached nearly 14 percent of GDP last year. According to the budget submitted to Parliament, the government predicts it will have cut the deficit to 7.8 percent of GDP by the end of this year, better than the 8.1 percent target that was part of the conditions for Greece to receive an international bailout package.

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