Greece has slashed its deficit targets for the next four years following its latest international debt relief deal.

A revised mid-term strategy paper submitted to Parliament foresees the budget deficit shrinking to €7.9 billion, or 4.3% of the country's annual gross domestic product this year.

That beats the budget target of 5.2%, and the previous mid-term target for 2013 of 5.5%.

The forecasts, made public today, also provide for lower deficits through 2016, when overspending will hit 2.3% of GDP.

Greece has survived on international bailouts since 2010, in return implementing deep spending cuts and tax hikes to tame deficits that peaked at more than 15% when the economy started to implode in 2009. The revisions require parliamentary approval.