The new bill would double tax preferences for families with children, extend the preferential VAT rate for home purchases and phase out some taxes on businesses.
The agreement was signed by state secretary for tax affairs Norbert Izer and József Kerekes, state secretary at Serbia's Finance Ministry.
The finance ministry affirmed the government’s commitment to improving balance indicators and said the 4.5% GDP deficit target for the year was achievable.
Hungary’s cash-flow-based budget deficit was 4,593.4 billion forints (EUR 12.1bn) at the end of December.
The rating agency also noted that the government had access to a “broad array” of financing, including a stable domestic banking sector, retail securities and issues on international markets.
The finance ministry noted that expenditures related to the regulated utility price scheme for households came to 969.2 billion forints by the end of June.
In 2024, families will benefit from over 3,300 billion forints (EUR 8.9bn) in family assistance and tax reductions.
The finance minister said Hungary required a budget that guaranteed the country’s security, protected families, pensions, jobs, and cheaper household energy bills.
Despite the challenging circumstances, the government’s aim is to return to a higher growth path of around 4% next year with disciplined fiscal management while curbing inflation to 6%.
The economy’s foundations are robust, with one of the lowest unemployment rates in the EU and the number of jobholders stable at around 4.7 million.
The public debt-to-GDP ratio is expected to fall to 63.9% by 2025, the finance ministry said.