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Finance Minister Mihaly Varga submitted Hungary’s 2020 budget bill to parliament on Tuesday.

Before presenting the document to Speaker of Parliament László Kövér, the minister said the bill is designed to support families with a focus on implementing the government’s family protection action plan.

He highlighted increased support for families, the economy protection action plan, tax cuts and increased spending on security as the budget’s four main pillars.

Govt Reduces 2020 Deficit Target

Next year’s budget targets annual economic growth of 4 percent and a budget deficit of 1 percent of GDP, he said. The public debt is seen dropping to 66.7 percent of GDP by the end of the year and inflation is targeted at 2.8 percent, the minister added.

He said the government had once again drafted a balanced budget.

The government will spend an extra 224 billion forints (EUR 691m) on family support while the economy protection action plan will pump another 500 billion forints into the economy, Varga said.

Meanwhile, Kover confirmed that lawmakers will vote on the budget on July 12.

The 2020 budget bill submitted to lawmakers targets a narrower deficit and more than doubles the size of reserves from this year.

The budget bill targets revenue of 21,424.7 billion forints and spending of 21,791.7 billion, producing a deficit of 367 billion.

The revenue target is 9.4 percent higher than the target in the 2019 budget while the spending side is 5.9 percent higher. The 2020 deficit target is less than half the 2019 target.

The bill sets aside 488 billion forints in reserves, including 378 billion in the National Protection Fund and 110 billion for “extraordinary government measures”, more than double the total of 225 billion of reserves in the 2019 budget.

The cost of debt maintenance targeted in the bill is 1,078.5 billion forints, 9.8 percent above the 2019 target.

The bill targets VAT revenue of 4,967.8 billion forints, up 15.8 percent from the previous year’s target. Revenue from personal income tax is set to grow by 10.5 percent over the 2019 target to 2,608.9 billion.

In the featured photo: Mihály Varga and László Kövér. Photo by Tamás Kovács/MTI

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