Budapest (MTI) – This year’s budget deficit will be lower than previously expected, at 2.6-2.7 percent of GDP, Economy Minister Mihaly Varga said in an interview published in Saturday’s daily Magyar Hirlap.

Economic growth has been higher than expected this year and this helped the development of central revenues. As a result, the central budget is expected to close with a surplus in December, like it did in September, October and November, he said. He added, however, that several factors influence the final deficit figure, for instance the way ministries and budget financed institutions close their finances for the year.

He confirmed that there are no plans to issue FX bonds next year but added that a dogmatic approach should be avoided.

“If the situation in financial markets is favourable and it is worth for Hungary to replace long-term, high-interest securities with the involvement of an FX bond issue, then we will do it,” he added.

Commenting on the bank tax, he said “the government is ready to develop a system in which current burdens are reduced in exchange for crediting.”

Asked whether a new agreement is planned between the government and banks, he said “it is time to think about a new framework and start the preparation of new agreements”.

Photo: MTI

Source: http://mtva.hu/hu/hungary-matters

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