Márton Nagy, Minister of Economic Development, said the cabinet has decided to set up a fund for protecting the cap on utility bills and is introducing a tax on extra profits to finance it. In an interview on public radio on Sunday, Nagy said this year the fund will be worth HUF 800 billion (EUR 2.04bn), while next year it will reach HUF 1,000 billion. The details of the decision will be published in the Hungarian Gazette at the weekend, he said. Nagy said the new tax on banks, energy and trading companies and airlines, among others, would be temporary and targeted.
Companies will be monitored to ensure that they don’t pass on the cost of the tax to consumers, he said. Nagy said ministry budgets are being cut by 10 percent, with savings of HUF 581 billion expected this year and HUF 500 billion the next. Also, savings of HUF 1,150 billion will be made in 2022-2023 by rescheduling and postponing certain public investments. Meanwhile, financial support packages will be focused on households, Nagy said, noting that local councils and businesses would no longer enjoy government subsidies. Related savings are targeted at over HUF 2,000 billion per year, with a view to hitting the budget deficit target of 4.9 percent of GDP this year and 3.5 percent in 2023.
Photo credit: MTI