The fiscal costs of family support measures unveiled by the government in February are expected to reach 0.3 percent of GDP this year and 1.1 percent of GDP next year, a government official said on Thursday.
The measures will not impact the general government deficit target in either year, finance ministry state secretary Gábor Gion said at a conference organised by the Hungarian Economics Society.
Rate of Population Decline Increases
Gion said that the measures could lift GDP growth by 0.1 to 0.2 percent this year and by 0.3 to 0.5 percent next year.
A month earlier, the National Bank of Hungary estimated the fiscal cost of the family support measures to reach 0.1 percent of GDP this year and climb to around 0.4 percent of GDP in 2020 and 2021.
Hungarian Gov’t Aims to Create Baby Boom with Generous Financial Help
The additional family support measures, which include interest-free credit for prenatal support, subsidies for new cars and an increase in the number of places in creches, among others, were announced by Prime Minister Viktor Orbán in February as part of the government’s efforts to deal with falling population rates.
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