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New Govt Family Subsidy Package to Cost Huf 150 Bn a Year

Hungary Today 2019.02.12.

State secretary for family policy Katalin Novák has said the family support measures unveiled by the prime minister on Sunday will cost the central budget about 150 billion forints (EUR 472m) a year.

This year, the fiscal impact of the measures are expected to be half that amount, Novák told a press conference on Monday.

She noted that the 10 million forint loan (EUR 31,500) available to women committed to having children would be available from July 1, 2019. Women between the ages of 18 and 40, in their first marriage, who have worked for at least three years are eligible for the loan which will be interest free, she added.

Csok loans will become available for the purchase of resale homes from July 1, 2019, she said.

A 35 million forint cap on the value of resale homes for which families with children may apply for csok subsidies will be scrapped, she added.

The personal income tax exemption for women with four or more children is expected to be introduced from 2020, Novák said. The exemption will apply only to earned income, not to dividends, she added.

Payments to grandparents for carrying out child care will only apply if they are not yet pensioners and if they take child care leave, she said.

The 2.5 million forint subsidy for the purchase of large passenger cars may cover at most half of the cost of the vehicle, she added.

featured image via MTI/Noémi Bruzák