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May 03, 2017

2018 budget bill put before Parliament

Government targets are unchanged from 2017 - achieving full employment, maintaining economic growth and boosting security

Hungary's minister for National Economy has submitted the 2018 budget bill to Parliament. The 2018 budget is one for “people who earn their living from work," Mihály Varga said.

Government targets are unchanged from 2017 - achieving full employment, maintaining economic growth and boosting security, he added. The budget targets 4.3 percent GDP growth, up from 4.1 percent projected for 2017.

The small business tax will be reduced by one percentage point to 13 percent. Tax benefits for families with two children will rise, leaving them with an additional 420,000 HUF a year in disposable income on average. VAT rates on catering, fish and internet service will be reduced to 5 percent, he said.

The budget allocates 81 billion HUF more for education, 287 billion HUF more for pensions and social services, 83 billion HUF more for the police and security and 205 billion HUF more for economic development, Varga said. It earmarks 226 billion HUF for home purchase subsidies for families.

The final vote on the budget bill is expected on June 15th, László Kövér, speaker of the Parliament, has said.