According to Márton Nagy, reaching four percent growth is a long-term target.Continue reading
According to data published by the Central Statistical Office (KSH), the public debt ratio is projected to decrease to 73.5 percent in 2023, while the budget deficit is forecasted to be 6.7 percent. This indicates that Hungary’s public debt remains nearly 10 percentage points below the EU average.
The Ministry of Finance emphasized in a commentary on the KSH report that the government anticipates a decreasing deficit and public debt in both this year’s and next year’s budget. Despite facing adverse external economic impacts, the budget has effectively allocated resources to safeguard pensions and family benefits, and has maintained cuts in rationing despite extraordinary expenditures, the statement noted.
In 2023, the government allocated over HUF 1,300B (EUR 3.2B) for household income protection, while pension spending reached nearly HUF 6,400B (EUR 16.1B). Additionally, family allowances and tax benefits totaled more than HUF 3000B (EUR 7.5B). Final figures will be disclosed in the final accounts.
The Ministry of Finance is currently revising this year’s budget and preparing for the next year. The government is dedicated to reducing the budget deficit to 4.5 percent this year, 3.7 percent next year, and 2.9 percent by 2026. These measures are expected to propel the Hungarian economy back onto a growth trajectory this year, aligning with international expectations, and potentially positioning it among the top performers in the EU league table next year.
Via MTI; Featured Image: Pixabay