Gov’t to Postpone Projects and Increase Reserves

MTI-Hungary Today 2021.12.11.

The government has decided to postpone some development projects and increase the central budget’s 2021 reserves by a total 350 billion forints (EUR 958m), the finance ministry said late on Thursday.

Hungary’s budget deficit widened by 1,009.1 billion forints (EUR 2,7 billion) in November.

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Referring to Hungary’s 6.1 percent GDP growth and an increase of 12 percent in investments, the ministry said that “a smaller amount of state investments” was now sufficient to boost the economy.

Hungary has not only restarted its economy among the first countries of the European Union, its performance has now exceeded pre-pandemic levels, which offers opportunities to improve the balance of the economy, the country’s financial stability and investor rating, the statement said. It added that topping up central reserves would not impact allocations to finance 13th months pensions to seniors next year, refunding the personal income tax to families, exempting young people from the personal income tax and cut taxes on labour.

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In the featured photo: Finance Minister Mihály Varga. Photo by Noémi Bruzák/MTI