Hungary has entered a decisive phase of economic and social development, implementing the largest tax reduction program in Europe while strengthening family support, housing policies, and business incentives, PM Orbán announced in his opening address for the spring parliamentary session.
He emphasized that Hungary's tax policies are designed to increase family incomes and economic growth. The government’s youth employment scheme offers a HUF 4 million interest-free loan for young workers under 25, who also remain exempt from personal income tax. The child-related tax benefits will be doubled in two phases, while working mothers with two or more children will receive lifelong tax exemptions through a gradual rollout.
On housing, the government has extended the 5 percent reduced VAT on new residential properties until the end of 2026. A housing capital program aims to accelerate construction, adding 10,000 new homes annually. Employees can now receive a tax-advantaged housing subsidy of up to HUF 150,000 per month, while the rural home renovation program has been expanded to include pensioners, offering them HUF 3 million in non-refundable support.
PM Orbán outlined major wage increases across various sectors. The minimum wage will rise by 9 percent this year, with further increases planned in 2026 and 2027. Teachers, doctors, and healthcare workers will also benefit from significant pay rises. He noted that teachers’ salaries have increased sixfold since 2010, and healthcare professionals now earn four to six times more than before.
To support small and medium-sized enterprises (SMEs), the government has introduced a HUF 100 billion capital investment program and a HUF 350 billion export promotion credit scheme. Businesses will also benefit from tax cuts, with VAT exemption thresholds raised from HUF 12 million to HUF 18 million, impacting nearly 900,000 enterprises.
Addressing inflation, the prime minister confirmed that the government has begun negotiations with retailers to curb food prices. If necessary, the state will introduce price controls and restrict profits on essential goods. Additionally, pensioners will receive VAT refunds on basic food items to help protect vulnerable citizens from rising costs.
PM Orbán also reaffirmed Hungary’s strong stance on sovereignty. He rejected Brussels’ demands to repeal Hungary’s child protection laws and stated that new legislative steps will be taken to strengthen them. "Children must be protected, and this is a fundamental principle that we will not compromise on," he declared.
Regarding Ukraine’s EU accession, the prime minister made it clear that Hungary will not approve membership without Hungarian consent, warning that premature integration would harm Hungarian farmers and the broader economy. He also emphasized Hungary’s refusal to implement the EU’s migration pact, reaffirming the government’s commitment to national security.
PM Orbán concluded by stating that 2025 will be a year of the breakthrough, not only in economic growth but also in political influence. He emphasized that Hungary, after 15 years of being in the minority on key European issues, is now aligned with a growing political majority in the West that supports sovereignty, family values, and migration control.
"The breakthrough is happening, and Hungary is at the forefront of this transformation," he declared.