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May 23, 2018

Hungary's finance minister: New tax cuts are planned and fresh investments are on the horizon

Hungary wants to preserve the current growth rate of around 4 percent, new tax cuts are planned and fresh investments would be coming on tap, the minister said

Hungary’s finance minister has said that the government will not veer away from its pursuit of a strict fiscal policy.

Mihály Varga said the budget before 2010 had destabilized the economy, and efforts since to shrink the public debt and stick to a low budget deficit had led ratings agencies to improve their evaluation of the country’s sovereign debt.

The minister also stated that the European Union stopped its excessive debt procedure against Hungary because of these measures.

“We don’t want to give up any of this in the next few years, since the aim is not to upset a result we’ve achieved … but to build on it with new economic initiatives,” Minister Varga said.

Hungary wants to preserve the current growth rate of around 4 percent, new tax cuts are planned and fresh investments would be coming on tap, the minister added.

For that matter, the European Bank for Reconstruction and Development (EBRD) has raised its forecast for Hungary’s GDP growth to 3.8 percent for 2018, up from its previous projection of 3.4 percent published in November.