Ireland's budget deficit will fall to 4.5 percent of Gross Domestic Product (GDP) from 5.1 percent after a deal to cut the burden of the country's bank debt, documents released by the finance ministry on Thursday showed.

"What it means is there will be 1 billion (euros) less taken from expenditure and tax cuts until 2015," Finance Minister Michael Noonan told a news conference.

(Reporting by Padraic Halpin; Editing by Carmel Crimmins)