Hungary’s budget is in trouble: less income, more expenditure, state unable to save money
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The Orbán government, having a supermajority, regularly accepts Hungary’s annual budget the year before. After the COVID pandemic broke out, the parliament had to rewrite most of the budget numbers because the state always spent more than calculated in the previous year.
According to 444.hu, that is what happened this time, as well. The parliament accepted the 2023 budget in May 2022 when we knew nothing about this year’s challenges. That is why Hungary reached only 71 percent of the calculated income. Meanwhile, the increase rate of expenditures compared to last year is almost 20% even though the law calculated only 15%.
The core of the problem is that the Hungarian state did not get enough revenues from the VAT because people consume less due to the economic crisis. Meanwhile, the state must pay more on state bond interest. The state cannot save money.
Hungary’s cash-flow budget deficit narrowed
Hungary’s cash-flow budget deficit narrowed to 3,264.9 billion forints at the end of September, posting a surplus of 33.7 billion in the single month, the Finance Ministry confirmed in a detailed release of data on Friday. The central budget posted a shortfall of 3,266 billion forints at the end of September, with social security funds 135.7 billion in the red and separate state funds 136.7 billion in surplus.
I’m not surprised. When I look at the public-sector bureaucracy and waste around me, it’s a miracle how the country keeps going at all. At least the government has saved us from a flood of tens of thousands of illegal aliens who would cost us endless resources: from having to house, feed, and clothe them, to having to police them and prosecute them when they engage in criminality (which, given Western countries’ experiences), very many of them do.
Steiner Michael – whilst I concur in the majority of your commentary, what just is NOT, and has NEVER been, under the Orban plans for the FUTURE of Hungary, is the NEED to build CAPITAL.