Family Min: Govt to spend € 9.7bn on family support in 2022

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Hungary’s government will spend some 3,500 billion forints (€ 9.7 billion), or 6.2 percent of GDP, on family support measures in 2022, Katalin Novák, the minister in charge of family affairs, said in an interview to Saturday’s edition of the daily Magyar Nemzet.

Commenting on the left-wing opposition’s claims that the government had drafted an “election budget” for next year, Novák said the government had gradually been increasing spending on family support schemes since 2010.

“We didn’t just start this work now but have been continuously allocating more resources [towards family support],” Novák said. “Spending on family support measures will increase to around 3,500 billion forints (€ 9.7 billion) next year. Up from just 960 billion forints (€ 2.67 billion) in 2010.” This means that the government will spend 6.2 percent of GDP on supporting families, “which is also outstanding in an international comparison”, the minister added.

Novák said the government was not simply “giving handouts”, but rather implementing “well thought out measures”, noting that taxes on income have been gradually reduced since 2010.

Government offered further tax cuts

“I remember when we first introduced the flat personal income tax rate our critics were saying it would destroy the budget, yet tax revenue and consumption both increased,” she said. “We again expect the savings to be accumulated by families to flow back into the economy. We’re still not thinking in terms of austerity measures but looking to give people more room for manoeuvre.”

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4 Comments

  1. Nah Kati, the government has already been upfront about increasing the birth rate. Their support for increasing the birth rate has been going on for years with some moderate success. Thus this increase in funding for families shouldn’t come off as vote buying or a surprise. They were spending around 5% of the Hungary’s GDP on this policy.

  2. I appreciate what you are you saying, TheRealist, but deconstruct many of these ‘family’ policies and how and who they benefit falls apart. I live in Budapest. I have a big extended family in Hungary. I know the reality.

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