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Finance Minister: Budget is on a stable footing

The finance minister said Hungary's financing needs can be met next year and the budget is on a stable footing.

Finance Minister Mihály Varga said Hungary's financing needs can be met next year and the budget is on a stable footing.
 
According to MTI, the minister said that even amidst the poor international environment, the government will be able to continue cutting the budget deficit and the public debt, adding that the former will be reduced to 3.5% in 2023 after 4.9% forecast for this year, while the public debt will fall from 76.8% at end-2021 to 74% by the end of this year. Minister Varga said the 2023 budget will be redrafted by the end of the month — though sticking to the same deficit target — to take into consideration “a different economic path” ahead which envisages bypassing a recession and achieving growth of 1.5%. This would come after the expected growth of 4.5-5.0% this year. He said energy costs had added 4,000 billion forints (EUR 9.9bn) to the public finances. At the same time, he said there was record employment and a jobless rate which is among the lowest in the European Union. Growth, he added, was still above the EU average and Hungary’s tax system was internationally highly competitive. Investments, he said, were robust and the balance indices have improved thanks to government action taken during the year.