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Jun 11, 2018

Finance minister: Public debt can be reduced from 72.9 percent to below 60 percent by 2022

Mihály Varga said the government’s objectives are to secure economic growth with a rate of about 4 percent, job creation, full employment, reducing debt and a low budget deficit

Hungary’s finance minister has revealed that public debt can be reduced from the current 72.9 percent to below 60 percent by the end of the present governing cycle in 2022.

In an interview with Magyar Hírlap, Mihály Varga said the government’s objectives are to secure economic growth with a rate of about 4 percent, job creation, full employment, reducing debt and a low budget deficit.

The minister also added that social security tax could be reduced by another two percentage points in 2019, from 19.5 to 17.5 percent.

He said the government will grant further tax benefits to families. The benefit for families with two children will increase to 40,000 HUF (126 EUR)a month.

The minister said that as long as Hungary does not join the euro zone, it focuses on complying with the conditions for accession.

“Not because we want to join [the zone] but because these conditions - low public debt, moderate inflation, low interests - favor the economy. Fortunately, Hungary has met nearly all the major criteria. This is why we face the dilemma of when and how it would be worth joining the euro zone. At present we need not haste,” Minister Varga said.