The Hungarian economy has the resources for a modern education system, Prime Minister Viktor Orban has said.
During an interview on Kossuth radio, the Prime Minister said that the Hungarian economy has the financial means needed for a modern, accountable, reliable education system providing students with the most up-to-date knowledge.
He added that the agreement reached with teachers necessitates amendment of this year’s budget.
“As the economy has performed well – although the last quarter raised some concerns – amendment of the 2016 budget can be undertaken responsibly; as a result of this, we will be able to increase resources spent on education," he explained.
Talking about the proposed reduced rate of VAT on food products in the 2017 budget, the prime minister pointed out that this may help those who need it the most, since they spend more of their income on staple products.
The prime minister also talked about lowering the rate of VAT on restaurant services to 18 percent, which he explained by the fact that current tax burdens in the catering industry can hardly be offset in a law-abiding way. He noted that originally he would have preferred to reduce VAT on restaurant services to 5 percent at a stroke, but “the finance minister is right: carrying this out at once would be more than dangerous”. Therefore he accepted the approach of Minister for National Economy Mihály Varga to first lower the rate to 18 percent, and then see whether it can be further moderated by 2018.
Finally, the prime minister praised the Hungarian winner of the European heat of the Bocuse d'Or world chefs’ championship, the Hungarian ice-hockey team and the Hungarian swimmers at the European Aquatics Championships in London.
”There are Hungarians who are talented, hard-working, persistent, and able to use growing opportunities more and more. This is not politics, this is not about the government, but what Hungary is capable of," he said.