BEIRUT, May 8 (Xinhua) -- Lebanon's House Speaker Nabih Berri slammed Wednesday rumors about Lebanon being on the verge of bankruptcy, the National News Agency reported.

"Lebanon is not bankrupt and the rumors that are being spread do not reflect reality," Berri said during his weekly meeting with members of parliament in the capital Beirut.

Berri assured that the monetary situation in Lebanon is stable and under control.

He added that achieving a proper state budget will restore confidence in the country and its economy.

Lebanese officials have been calling for harsh austerity measures in a bid to reduce the country's budget deficit and save the economy from a catastrophe.

Among the unpopular measures that the government has been promoting is the cut in wages of public sector employees which created fears among the Lebanese people about the future of the economy in Lebanon and the dire situation that has pushed officials to take such harsh measures.

Endorsing a state budget that slashes the deficit is among the measures the government has pledged to take as part of the key financial and economic reforms.

To curb Lebanon's budget deficit, which has increased to over 11 percent of GDP, the cabinet will seek to reduce the deficit by 1 percent each year over the next five years by limiting government expenditures.

Local economists have been calling for alternative ways to cut the budget deficit including the fight against corruption and tax evasion in addition to stopping employment in the public sector and introducing serious reforms in the electricity sector.