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Finance Ministry Submits Budget Amendment to Parliament

MTI-Hungary Today 2021.04.21.

The finance ministry on Tuesday submitted to parliament the amendment to the 2021 budget on continued allocation of funds for coronavirus protection and economic recovery measures, the ministry said in a statement.

The bill also covers the home purchase scheme announced last autumn and increases in health-care, family support and local government funding, it said.

Since the approval of this year’s budget, the coronavirus pandemic warranted significant changes in economic measures and decisions, the ministry said.

Fiscal Council: 2021 Budget Deficit Target Needs to Be Raised
Fiscal Council: 2021 Budget Deficit Target Needs to Be Raised

Hungary’s Fiscal Council noted on Thursday the deficit target in the 2021 budget would have to be raised. The government earlier said it would raise the 2021 deficit target, calculated according to European Union accounting rules, from 2.9 percent to 7.5 percent of GDP. Hungary has reached 36 percent of the original full-year deficit target […]Continue reading

Under the amendment, Hungary’s deficit target is at 7.5 percent (from 2.9 percent). This will allow a reduction of state debt to 79.9 percent of GDP by the end of 2021 from 80.4 percent in 2020.

The amendment projects a 4.3 percent economic growth in 2021, the statement said.

A parliamentary vote on the amendment is expected during the spring session, the ministry said.

In the featured photo: finance minister Mihály Varga. Photo by Noémi Bruzák/MTI