Weekly newsletter

Economy Minister: Budget Deficit Lower, GDP Growth Higher Than Expected

Tamás Székely 2014.12.22.

This year’s budget deficit will be lower than previously expected, at 2.6-2.7% of GDP, Economy Minister Mihály Varga said in an interview published in daily Magyar Hírlap. As for the economic growth, it has been higher than expected this year and this helped the development of central revenues, Varga told. As a result, the central budget is expected to close with a surplus in December, like it did in September, October and November. He added, however, that several factors influence the final deficit figure, for instance the way ministries and budget financed institutions close their finances for the year.

He confirmed that there are no plans to issue FX bonds next year but added that a dogmatic approach should be avoided. “If the situation in financial markets is favourable and it is worth for Hungary to replace long-term, high-interest securities with the involvement of an FX bond issue, then we will do it.”

Commenting on the bank tax, he said “the government is ready to develop a system in which current burdens are reduced in exchange for crediting.” Asked whether a new agreement is planned between the government and banks, he said “it is time to think about a new framework and start the preparation of new agreements”.

Last week Mihály Varga presented the regular monthly awards for successful enterprises at a ceremony held in the building of the Ministry for National Economy in Budapest. Winner of the “Investor of the Month” award was Nemak Győr Alumíniumöntöde Ltd, a manufacturer and developer of top-tech aluminium cylinder heads and engine blocks. Over the past years, the company has invested HUF 6bn and created 200 new jobs.

With awarding the “SME of the Month” title to Hidrofilt Vízkezelést Tervező és Kivitelező Ltd, the jury acknowledged high quality production through innovative technology, the minister said and added that the enterprise has become one of the largest waste water-treatment companies in Central Europe.

The “Start-up of the Month” in November is Indivizo Ltd, the creator of a video interview platform that helps HR professionals in the early-stage selection of labour force. This provides more flexibility also for job-seekers in comparison to traditional interviews.

via hungarymatters.hu and kormany.hu photo: Tibor Illyés – MTI


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