Economy & Policy

Next year’s budget will protect low utility prices and better defense

HUF 670 billion has been allocated for a housing protection fund and 842 billion for a defense fund.

Finance Minister Mihály Varga said that the Hungarian economy is performing better, employment is at its peak, and tax evasion is lower, so despite the steady decline in taxes, tax revenues are expected to be higher in next year’s budget.

He noted that there is no talk of austerity. 

As an example, Varga cited the figures for May, when even with tax cuts, the main tax revenues in the budget increased by 23 percent. While last May, HUF 1.3 trillion was collected, this year, it was HUF 1.6 trillion. Corporate tax revenues were up 40 percent, small business taxes up 50 percent and personal income taxes up 17 percent, he said.

“This performance contributes to preserving the country’s security amidst the uncertain global economic situation and the achievements of recent years, such as reducing utility bills, providing family benefits and pensions, and further reducing the deficit and public debt,” the finance minister said.

The budget deficit will be improved to a level of 3.5 percent, public debt is expected to be 73.8 percent, and economic growth should be around 4 percent, he announced. 

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