Iceland PM backs no-deficit budget as good for country

Icelandic Prime Minister Kristrún Frostadóttir has welcomed the government’s goal of presenting a no-deficit budget, calling it “good for Iceland”, mbl.is reported.

In a Facebook post, Frostadóttir said the proposal would be Iceland’s first no-deficit budget in nearly a decade. Its aim is to stop running the state on an overdraft, meaning the government would no longer fuel economic overheating and inflation, she said.

“If this were easy, it would have been done long ago,” Frostadóttir wrote. She said the government remained determined to meet its target. She was not available for comment after the budget proposal was presented.