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Audit Office, Fiscal Council say budget supports financial stability

Audit Office, Fiscal Council say budget supports financial stability

Budapest, May 17 (MTI) – The 2018 budget bill is sound and will contribute to the country’s financial stability, the head of the State Audit Office (ASZ) said in the parliamentary debate of the bill on Wednesday.

If the economy performs as expected, planned revenues can be achieved and in some cases surpassed, László Domokos said.

At the same time, ASZ has identified risks of overspending of 107 billion forints (EUR 344.9m), he said.

Domokos also gave warning of over-financing in the real estate market, and he called for considered and careful use of housing subsidies to avoid “creating a real estate bubble”.

He also pointed to dangers connected with planned wage hikes in the public and private sectors as well as measures to boost consumption, which could stoke a rise in imports and lead to a deterioration in the country’s current account balance.

Árpád Kovács, head of the Fiscal Council (KT), said that planned revenues and expenditures accorded with the country’s economic performance so far and forecasts for 2018.

The council sees risks on the income side in terms of VAT, personal income tax and social contributions, he said, adding that overall, however, planned revenues were realistic.

The public debt can be kept within a manageable range even if the economic growth rate is slower than planned, he said. Moreover, it could fall to below 70 percent of GDP for the first time, complying with the stipulations of the constitution, Kovács said.

Source: MTI

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