FILE PHOTO: Finance Minister Ali Hassan Khalil is seen at the presidential palace in Baabda, Lebanon February 19, 2018. REUTERS/Mohamed Azakir/File Photo

BEIRUT (Reuters) - Lebanon’s cabinet made “important” progress on Sunday in its debate over the draft budget which will have a deficit of 8.3% of GDP or less, Lebanon’s Finance Minister Ali Hassan Khalil said

The deficit was 11.2% of gross domestic product (GDP) in 2018. Lebanon has one of the heaviest public debt burdens in the world at around 150% of GDP.

Khalil tweeted that ministers would convene on Monday for a “final review” of the draft budget. “We discussed the last of the clauses and numbers”, he wrote.

“We reached a very encouraging and important result”, Khalil told reporters after a late night cabinet meeting. “With some additional decisions ... we got to this deficit”, he added.

Khalil said on Saturday the deficit would be below 9% of GDP and would include a saving of around 1 trillion Lebanese pounds ($663 million) in debt servicing costs.

He told Reuters the government aimed to reduce debt servicing costs by issuing treasury bonds at an interest rate of 1%.

Lebanon’s coalition cabinet has met almost daily to finalize a budget in an effort to get spending under control and rein in debt. President Michel Aoun has urged Lebanese to make sacrifices to rescue the country from financial crisis.