Economy & Policy

PM Orbán: 2021 budget to focus on job creation

Previous economic success has put Hungary on solid footing to address the challenges posed by the coronavirus.

Prime Minister Orbán consulted with the Ministry of Finance and its various institutions on this year’s and next year’s budget. 

“In Hungary, the focus of crisis management tools is still on job creation,” the PM said.

The aim is to create as many jobs as are lost due to the coronavirus, plus create new ones. The 2020 and 2021 budgets and the economic protection action plan should serve this goal. The most important elements are investment support, public development programs, wage subsidies for vulnerable workers, tax cuts for job retention, 0-percent loans for entrepreneurs and the 13-month pension, said the prime minister.

Hungary’ s performance has been above the EU average, and its economy is now on a solid footing to address the challenges caused by the coronavirus pandemic and mitigate its negative effects. 

The Ministry of Finance also drew attention to the fact that, thanks to the economic policies of recent years, the epidemic hit a resilient, balanced economy in March.

The economic protection action plan will also help restart the economy, and, together with the steps of the Magyar Nemzeti Bank, this accounts for about 20 percent of GDP. The measures are expected to improve the economy’s performance by 3.7 percentage points this year and 4.3 percentage points next year. 

According to this year’s convergence program, GDP growth will be 7 percentage points lower than in 2019, but an increase of 4.8 percent is expected in 2021. 

They expect unemployment to be 5.6 percent this year, following 3.4 percent last year, and to reach 4.3 percent in 2021.

The parliament will discuss the budget before its summer recess and provide a six-month preparation period for learning about the government measures and the right financial, economic, and regulatory environment.

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