According to the government’s calculations, the Hungarian economy is expected to have expanded by 6.4 percent in 2021, and this year’s growth could be well above 5 percent. In a Facebook post, Finance Minister Mihály Varga said this would allow tax cuts to continue.
The minister added that a disciplined and tight budget is needed as well. Financial reserves were significantly increased at the end of last year and rescheduling investments is on the agenda for 2022. However, no steps are necessary that would justify further deficit or spending cuts, the minister said in an interview on Kossuth Radio.
Varga said that before the outbreak of the coronavirus epidemic, the Hungarian economy was on a very good growth path, with the highest growth in the European Union in 2019.
The minister emphasized that the government has cut taxes by HUF 1.5 trillion this month, including personal income tax (PIT) cuts and PIT exemptions for young people under 25 and mothers of four or more children. Furthermore, the total family tax credit of HUF 12 billion in 2009 has increased to HUF 980 billion in 2022 he added.