The Portuguese Parliament has passed the government budget bill for next year, which envisages reducing the fiscal deficit, Reuters reports.

The news agency says the bill limits the budget deficit to 1.1 percent of gross domestic product.

The report says the bill envisages that annual growth in GDP will slow next year to 2.2 percent from the 2.6 percent forecast for this year.

The bill assumes investment, tourism and exports will remain robust next year.

The government intends to cut the amount of tax paid by people on low and medium incomes, and to increase pensions, Reuters says.