There are strong indications that the national budget deficit which has to be corrected in the national budget for 2011 will be ISK 10 billion lower than originally expected; approximately ISK 40 billion instead of 50 billion (USD 310/387 million, EUR 254/318 million).
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According to Fréttabladid’s sources, it is assumed that 75 percent of the amount will be covered by lowering expenses and 25 percent by increasing revenue.
Minister of Finance Steingrímur J. Sigfússon said further changes to the taxation system are not to be expected.
By and large, the same tax bases will be used as last year with a similar implementation, he said, while more specific methods to increase revenue will be examined.
The ministries are currently working on proposals for cutbacks, which are to be handed in to the Ministry of Finance by June 11. A five to ten percent cut is expected, depending on the issues.