Minister of Finance Mihály Varga presented the main directions of the Hungarian government's planned budget for next year at the Extraordinary Government Information. Given that the Russian-Ukrainian war also means uncertainty in planning, two types of drafts are prepared: one in case the war ends and one in case it continues.
The minister spoke about the fact that we are living in times of war, the global economic environment is volatile, and the effects of the protracted war are affecting Hungary. They are designed based on this. The results so far will not be lost, he added. The economic and physical security of the country is guaranteed by the budget, and the regime is maintained. The 2024 budget will be a defense budget. The family protection measures will remain, the value of pensions will be preserved, and the 13th monthly pension will also remain.
The Hungarian budget must prepare for the fact that the war will not end, strengthening the country's physical security is more important than anything else. The national defense fund will remain and the expenditure of the fund will exceed HUF 1,300 billion. That way
national defense expenditures exceed 2 percent of GDP.High energy prices have been maintained due to the failed sanctions policy in Brussels. The utility protection fund will also remain, as Hungarians pay the lowest prices in Europe. Those sectors that achieve extra profit should contribute to the defense of the country. By the way, extra profit taxes will be phased out in 2024.
Mihály Varga said that the economy performed well in 2022 as well, and the government's goal this year is for growth to continue. In 2023, 1.5 percent, while in 2024, a much higher, 4 percent expansion is possible. The consolidation of the budget will continue, and next year the deficit of the public finances will be below 3 percent. In the case of the public debt, the government expects a further reduction. The Minister of Finance stated that inflation could be 6 percent on an annual basis.
Next year's budget will have a reserve of 255 billion, announced Mihály Varga. The cabinet will continue to ensure one of the most favorable tax systems next year. Family support is more than 3.5 times more than in 2010.
In the case of pensioners, the inflation-tracking increase and the 13th monthly pension remain.Gergely Gulyás , the minister in charge of the Prime Minister's Office, spoke about the importance of reducing the budget deficit in connection with the EC's recommendations. Hungary is one of the countries where the deficit also decreased in the election year, he added.
We reject the European Commission's proposal and preserve the achievements of overhead reduction.Gergely Gulyás also spoke about the fact that the conditionality procedure has no deadline. This procedure only affects a small part of EU funds. In the case of the restoration fund, an agreement has been reached with the commission on judicial matters, and invoices will be sent soon, he added. In the case of the conditionality procedure, more and more conditions are coming, but the government is negotiating constructively.
In response to the questions, the minister stated that Brussels cannot force Hungary to eliminate utility reduction, and as for the European Parliament's efforts to deprive our country of holding the consecutive presidency, they do not have the competence to do so, i.e. they do not have the right to do so. If they decide on this, its legal relevance is just as much as if the Azeri parliament decides in this way - i.e. nothing.
Source: Origo.hu
(Cover photo: MTI/Tamás Kovács )
