In addition to financing the previously started programs, the government supports the recovery of the country's economic performance with significant additional resources. Magyar Nemzet reports that the economic restart action plan has a very wide range, from home creation to tax benefits.
The government called the 2022 budget the restart budget. However, this year's budget already emphasizes the acceleration of economic growth and the preservation of previous results. That is why the economic protection fund was created with a HUF 2,610 billion budget. With the recently voted amendment to the budget, the government ensures the additional resources that the country will use in the context of the economic restart action plan.
All of this makes it possible to continue, among other things the development of the Healthy Budapest program , which improves health care in the capital and Pest County. The attractiveness of the countryside is increased by the investments of the Hungarian village program, while the competitiveness of larger settlements is strengthened by the Modern cities program. Despite the difficulties arising from the crisis, road construction and railway developments did not stop. There is also money to continue the Paks II investment. This is important because the power plant contributes to the long-term competitiveness of the economy by producing cheap and predictable electricity.
In the convergence program, the government summarized what additional measures it had decided on in view of the epidemic and the deterioration of economic prospects, which will affect this year as well. Thus, for example, doctors will receive a significant salary increase in three stages, starting in 2021, salaries will rise more than ever in three years.
The business tax was temporarily reduced by half, and an interest-free quick loan was available with a limit of HUF 100 billion. The VAT related to the sale of newly built apartments has again been reduced to five percent, while families raising children can apply for up to HUF three million renovation subsidies, as well as discounted loans to help modernize homes...
...All these measures served the purpose of mitigating the effects of the crisis, and at the same time getting the economy back on the path of growth. Thanks to the successful vaccination program, with restrictions lifted, the country gained a leg up. The 4.3 percent growth trajectory of this year's budget will certainly be more favorable than previously expected.
There is a good chance that the economy will expand by more than 5.5 percent, so the way will be opened for the family tax refund at the beginning of next year.
Next year, the economic restart action plan will continue with the 2022 budget. Its elements will help with more than seven thousand billion forints to return to the golden age of growth of the Hungarian economy, which was broken by the coronavirus epidemic.
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