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Crisis-stricken Cyprus cut its public deficit to 4.9 percent in 2012, compared to a shortfall of 6.1 percent in 2011, according to a Ministry of Finance statement issued on Monday reports Global Times.
The statement said last year's deficit was lower than the revised target of 5.8 percent promised to international lenders. Cyprus has made an undertaking to further reduce its deficit this year to 3.3 percent and completely wipe it out in 2014.
Cyprus has negotiated a preliminary bailout deal with the troika -- the European Commission, the European Central Bank and the International Monetary Fund -- providing for deep cuts in salaries and pensions and hikes in taxes.
The ministry statement said expenditure in 2012 fell by 212.6 million euros (283 million US dollars) as a result of lower spending.
The deal has yet to be finalized, pending establishment of the amount needed for recapitalizing the banking sector following heavy losses on account of its exposure to Greek debt.
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