Budapest, April 23 (MTI) – The 2016 budget has some 100-120 billion forints (EUR 332-398m) of room for tax cuts, Arpad Kovacs, the head of the Fiscal Council, told public news channel M1 on Thursday.
Economic growth could be 2.5-3.5 percent in 2015, Kovacs said.
The whitening of the economy has helped a lot and this is expected to continue. The output of the construction, automotive and agricultural sectors has been good and this is expected to last throughout the year, he said.
Experts projected consumption to grow by about 2 percent in 2015 and maybe in 2016, too. This is due to consumer purchases postponed during the economic crisis picking up again. Construction projects helped by EU funding programmes have also been beneficial, he added.
Hungary’s government has approved proposals to reduce the personal income tax rate from 16 percent to 15 percent next year, at a cost of 120 billion forints, and lower the VAT rate on unprocessed pork from 27 to 5 percent, leaving 25 billion forints with taxpayers next year.