Hungary’s finance minister, Mihály Varga, has said that the government will not veer away from its pursuit of a strict fiscal policy.
In an interview to public television on Wednesday, Varga said the budget before 2010 had destabilised the economy, and efforts since to shrink the public debt and stick to a low budget deficit had led ratings agencies to improve their evaluation of the country’s sovereign debt, while the European Union stopped its excessive debt procedure against Hungary.
“We don’t want to give up any of this in the next few years, since the aim is not to upset a result we’ve achieved … but to build on it with new economic initiatives,” Varga said.
Hungary wants to preserve the current growth rate of around 4 percent, he said in a separate interview to public radio, adding that new tax cuts were planned while fresh investments would be coming on tap.
For that matter, the European Bank for Reconstruction and Development (EBRD) has raised its forecast for Hungary’s GDP growth this year to 3.8 percent, up from its previous projection of 3.4 percent published in November.
Varga welcomed the EBRD’s forecast, even if it is still below the Hungarian government’s.
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