Mihály Varga, in an interview to the daily Magyar Nemzet, said there is a high chance that Hungary’s public debt may be put back on a declining path.
The finance minister said the economy was likely to grow by more than 6 percent this year and the employment numbers were better than before the epidemic. Also, “we’ve avoided huge private, household and corporate bankruptcies,” he said in the interview published on Friday.
Owing to the backdrop a decade of fiscal discipline combined with measures to boost growth, when the pandemic hit, the government had the means to provide wage and investment subsidies to offset the economic downturn, and without any external financial aid, the public finances raised 3,000 billion forints (EUR 8.1bn), he said.
Owing to the backdrop a decade of fiscal discipline combined with measures to boost growth, when the pandemic hit, the government had the means to provide wage and investment subsidies to offset the economic downturn, and without any external financial aid, the public finances raised 3,000 billion forints (EUR 8.1bn), he said.
Like in in other European countries, the corollary was a spike in deficits and the public debt,
he added.
Addressing criticism by former central bank governor György Surányi that the balance indicators had deteriorated, Varga noted that all EU countries were still under the cloud of the 2020-2021 economic downturn which, he said, was
far worse than the previous global crisis in 2008-2009.
Comparatively, “Hungary isn’t doing badly,” he said, noting a debt-to-GDP ratio well below the EU average. Moreover, efforts are now being made to return it to a declining path, the minister said.
Having got off to a good start relaunching the economy, financing for public investments can be tapered, and the government has set a year-end spending ceiling while boosting this year’s financial reserves by 350 billion forints, Varga noted. Further,
755 billion forints has been bracketed in next year’s budget
by postponing several public investments, with a smaller deficit and debt stock achieved as a result, he added.
He said postponing public investments would not dampen economic growth next year, which, he added, would be over 5 percent. With an investment rate of 27.5 percent, Hungary has the highest in the European Union, he added. The government’s determination to improve Hungary’s balance indicators will stand the country in good stead when it comes to global economic risks ahead while improving the outlook of investors, Varga said.
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Source: MTI
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2 Comments
“pre-election government spendings”=ELECTION BRIBES
Other than that all the numbers are manipulated as they want(what is known as Cooking the Books).
Houdini was Hungarian born – renowed for his mysteriarich escape artistic performances.
The present Hungarian Government, that ALL indicators Globally used to access the Economic & Finacial performance – of a Country – in this case Hungary present and into the future, are trending in directions, that give cause – validness, that the Hungarian Economic& Financial outlook is in serious TROUBLE.
Propaganda – the school of Edward Bernays 1891-1995 – born in Vienna – practiced and admired by Joseph Goebbels 1897-1945 – the “infamous” Chief Propagandist – Reich Minister of Prodaganda for the Nazis Party 1933-1945 – why is Bernays “books” consistantly out, not available – from the Library in our House of Parliament ???
Mihaly Varga – Minister of Finance continues to add to the constant rhetoric – that he has delivered previously, and ingained – driven by – Propaganda and Not Fact.
Mihaly Varga – continues to Fail – listening to the ADVICE – he and the present Government of Hungary – are being given – by the Governor of the Central Bank of Hungary – Gyorgy Matolcsy.
The Major points of Recomendations – from Gyorgy Matolcsy are :
(1) – Re-structure of the Economic & Financial trend of the present Government.
(2) – Re-balance – bring future Economic & Financial policies and plans – back into a STRATEGY – of Economic & Financial Management – that is NOT – driving the overall Economy of Hungary – into a Deepening Larger Black Hole.
(3) – Proactiveness – of the present Government – to cease – its Spending – that should include as an example, the delaying of future major projects – on HOLD.
Mihaly Varga – there is a “high chance” that public debt – MAY – be put back on a declining path.
The “pressure” on the Hungarian economy at present – can ill afford on-going spending and the cumulation of greater DEBT.
We are NOT witnessing – in Fact continue to see, through the Political Spending Game – vast sums of tax payers money, being spent on, by the present Government, the up-coming National Elections in Hungary – April/May 2022.
Houdini – mastered the ability to Escape, and the citizens of Hungary – will decide the FATE of the present Government – if they do a Houdini or NOT.