The results of the domestic economy must be maintained even in the sanctions crisis, for this it is necessary to protect jobs and support businesses, Mihály Varga said on Friday. The Minister of Finance emphasized that we have already overcome two crises in the past decade, and we are holding our ground even in the current war period.
In 2010, the civil government took over the governance of the country in a situation when companies and families were being squeezed by increasing tax burdens and foreign currency debts, Mihály Varga said on Friday at the event of the National Association of Entrepreneurs and Employers, the 23rd Entrepreneurs' Day. The head of the ministry reminded that, thanks to the policy based on tax reductions, job creation, bleaching and investments, by the end of the decade, our country was at the top of the EU growth ranking.
After the restart after the pandemic, an unprecedented energy crisis unfolded as a result of the war and sanctions, he said. Mihály Varga highlighted that the country's crisis resistance is reflected in the fact that in the third quarter, the expansion reached 4.1 percent compared to the same period of the previous year, employment remains at a record level, while unemployment is one of the lowest in the EU.
Five factors strengthen our stability, he said. The first is high employment and low unemployment. The second is the competitive tax system, where there is little burden on income. The third is a favorable business environment that supports investments. The fourth is political stability, which strengthens confidence in the country - and this also means investor confidence - said Mihály Varga. And the fifth is that the adjustment of the balance sheet has started, and the balance of the budget and public finances has also improved in recent months.
The head of the ministry pointed out that, just as companies, the budget must also withstand challenges not seen in a long time. The government helps families and companies with support for small and medium-sized enterprises, a factory rescue program, maintenance of overhead reductions, job protection, tax breaks and loan programs. Despite the increased expenses, the public finances remained stable, we are keeping the previously defined deficit target of 4.9 percent, and with the right policy, we can avoid the decline next year as well, and even an increase of one and a half percent is possible, added Mihály Varga.
Source and photo: Magyar Hírlap
