The most important element of next year's budget is the economic restart action plan, which will enable everyone who has been put in a difficult situation by the coronavirus epidemic to get back on their feet, said Finance Minister Mihály Varga in Kossuth radio's Sunday Newspaper program.
Mihály Varga emphasized that we want to regain the growth capacity that characterized the years before the epidemic as soon as possible. As he said, 2022 could already be that year.
The Minister of Finance highlighted: it is calculated that in 2021 the economy will reach the point where it was at the end of 2019, before the epidemic, and in 2022 economic growth of 5.2 percent, a deficit target of 5.9 percent of GDP is expected, as well as the debt ratio is also on a downward trajectory.
Mihály Varga also added that there are important social political goals, among which he mentioned the support of families, the restoration of the 13th monthly pension, and the introduction of tax exemption for those under 25.
"Next year should already be about the completion of the restart, about the fact that the Hungarian economy can continue on the path it was on before the epidemic," he said.
The Minister of Finance recalled that the economic protection fund was very important - in which various sources were collected, for example, to start investments and protect jobs - as well as the epidemic prevention fund.
The 2022 budget preserves the structure of this, but it is already an economic restart; An economic restart fund of HUF 7,300 billion will be set aside in the budget, he explained. He added that there will still be a fund for health insurance and protection against epidemics, with a budget of HUF 3,600 billion.
At the same time, Mihály Varga explained that he is confident that after 2022 there will be less and less emphasis on protection against the epidemic.
The Minister of Finance drew attention to the fact that in the first quarter of this year, the appearance of last year's decisions was already felt, mainly in the field of investments and developments. He indicated that the launched investments will gradually appear in the operation of the economy. For this reason, Mihály Varga expects a strong "rebound".
He also explained that the biggest boost to economic growth since 2016 was the tax reduction and wage increase agreement that was concluded with employers and employees.
"If we can get back on this track, and there is a gradual but dynamic increase in wages, and at the same time we can reduce taxes, then the competitiveness of the Hungarian economy can improve, and the growth track can once again be imagined in the 4-5 percent band," said the finance minister.
Source: magyarhirlap.hu
Photo: Facebook/Mihály Varga
