Iceland's Minister of Finance and Economic Affairs Bjarni Benediktsson on Tuesday unveiled the Fiscal Budget Proposal for 2015 with its aim to ensure continuing economic stability and fiscal equilibrium.

The budget, balanced for the second year in a row, with a surplus of 34 million U.S. dollars, has been submitted to the Parliament.

Stability and growth in support of responsible economic policy was the core concept behind the government's prudent medium-term fiscal plan, according to a statement issued by the Ministry.

Treasury debt relative to GDP was expected to decline from 90 percent in 2011 to 74 percent by year-end 2015, paving the way for reducing taxes on households and businesses.

The government planned to sell a 30 percent stake of Landsbankinn Company, one of the largest banks in Iceland, in the next two years.

One of the fiscal policy's main aims was to increase investment and value creation in the domestic economy. The state contribution in an action plan would increase by 6.7 million dollars in 2015 and 17 million dollars in 2016 to attract investment on innovation and science companies and contribute to enhanced productivity.

The Ministry called for a reform of the value-added tax system mainly on narrowing the gap between tax rates and broadening the tax base. The proposal also provided the removal of the commodity tax on various common consumer goods to reduce their prices.

The child benefits, however, would increase by 13 percent and would be directed more effectively towards low-income parents. Enditem

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