Minister of Finance Mihály Varga announced the budget increase for the Large Enterprise Investment Support Program at the “digital foundation stone” ceremony for Vajda-Papír Kft.’s new production plant.
Varga emphasized that the company’s HUF 16 billion investment will protect 600 jobs and create 50 new ones, for which the government will provide HUF 5.5 billion in support.
The coronavirus epidemic showed that Hungary needs to stand on its own two feet in several industries. In addition to the healthcare industry, the government is supporting investments that strengthen the country’s self-sufficiency and provide additional sources of growth.
The minister said it is important for domestic businesses to emerge victorious from the crisis, so tax breaks and job-preservation measures will continue and investment support will increase. To recover from the economic crisis, Varga noted it is necessary to temporarily pursue a more costly fiscal policy than before, but the government will not give up its economic policy goals, he added. The confidence of economic players and the willingness of businesses to invest must be maintained, he emphasized.
The goal now, he continued, is to maintain the viability of the economy and return Hungary to its pre-crisis trajectory as soon as possible. This is being facilitated by the Enterprise Investment Support Program, which has already contributed to nearly HUF 300 billion in developments, and further investments are expected soon.
The original HUF 15 billion budget was already increased to HUF 40 billion, but the government has now decided to further increase it to HUF 80 billion.