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Finance Minister: Next Year’s Budget Ensures Full Resources to Relaunch the Economy

MTI-Hungary Today 2021.06.15.

In 2022, all the resources necessary will be available to relaunch the economy, create jobs and boost investments, Mihály Varga, the finance minister said after lawmakers approved next year’s budget on Tuesday.

He noted the government is providing additional support for families while phasing in the 13-month pension. Also, it is pressing ahead with further tax cuts by introducing tax exemptions for employees below the age of 25 while reducing taxes on labour, Varga said in a video message on social media.

The minister stressed the importance of pursuing a policy that steadily reduces taxes rather than raising them.

Parliament Passes Hungary's 2022 Budget
Parliament Passes Hungary's 2022 Budget

The government drafted its budget bill envisaging a GDP growth of 5.2 percent, 3 percent inflation, a deficit target of 5.9 percent of GDP, as well as emergency reserves of 0.4 percent of GDP.Continue reading

“The main figures in the budget will provide both the resources needed to restart the economy while also reducing the deficit and public debt,” he said, noting a deficit target of 5.9 percent of GDP and a public debt level of 79.3 percent.

Varga accused the opposition Jobbik party of proposing to spend three times the budget’s reserves, while the LMP party would introduce new taxes. Párbeszéd, he added, wanted to introduce basic income costing 1,400 billion. The minister said the opposition’s 1,148 “contradictory proposals” would have come to 8,800 billion forints, meaning new taxes, higher debt levels and hikes to existing taxes.

Featured photo by Tamás Kovács/MTI