Minister Nagy presented 2026 anti-war budget in the parliament, talks about medicine price caps

National Economy Minister Márton Nagy called the government’s 2026 budget bill an “anti-war budget” at the start of debate of the draft legislation in parliament on Wednesday.

Anti-war budget, says Minister Márton Nagy

Nagy said the 2026 budget aimed to mitigate the negative effects of the war in Ukraine and focused on support for families raising children, young Hungarians and pensioners.

The budget seeks to ensure the security of every Hungarian family, while allowing all Hungarians to “take a step forward”, he added.

He said the budget also provided guarantees for the continuation of Hungary’s work-based society.

Hungary’s government will roll out Europe’s biggest family tax cut programme in 2026, while maintaining the regulated utilities price scheme for households, ensuring pensioners get their annual bonus, protecting workplaces and creating new jobs, he said.

He noted that the 2026 budget bill assumed 4.1pc GDP growth and 3.6pc average annual inflation.

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Family support

The deficit target is 3.7pc of GDP, which assumes a primary deficit — excluding debt maintenance costs — of zero. Year-end state debt, relative to GDP, is set to fall to 72.3pc from 73.5pc.

Among expenditures in the budget are HUF 800bn in interest payments on government securities held by Hungarian households. Tax measures include a doubling of the tax allowance for families raising children and a personal income tax exemption for mothers of two under 40.

Nagy said the PIT exemption would leave around HUF 377bn with households, while the higher tax allowance would leave HUF 290bn. A PIT exemption for under-25s, introduced earlier, will cost the budget HUF 237.5bn, he added.

Family support in the budget adds up to HUF 5,600bn, including the HUF 800bn in support for the regulated utilities price scheme for households.

He also highlighted a 13pc increase in the minimum wage and a bonus, equivalent to six month’s salary, for Hungarians in uniform.

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Drug price caps

Nagy said the “most important” issue of 2026 concerned whether or not Hungarians’ money would go to Ukraine. He added that Brussels’ initiative to accelerate Ukraine’s European Union accession would come at “enormous cost” to Europe and Hungary, too.

He pointed to government measures to mitigate inflation, including mandatory caps on markups for some food and household products, as well as voluntary freezes on banking and telecommunications fees, and home insurance premiums. He said talks had also started on bringing down the prices of drugs that are not subsidised by the state.

The budget earmarks around HUF 5,050bn for economic development, including HUF 2,200bn in EU funding.

Additional 2026 expenditures

The budget also ensures resources for an economic policy action plan that aims to boost purchasing power, ensure affordable housing and scale up local SMEs in the framework of the Demjan Sandor Programme.