Finance minister Varga: Opposition proposals would boost spending by EUR 11.5 bn – UPDATE

Proposals submitted by the leftist opposition to next year’s budget would increase spending by 4,600 billion forints (EUR 11.5bn) and require tax hikes amounting to 3,240 billion forints, the finance minister said on Facebook on Monday.

Mihály Varga said the 436 opposition proposals would involve changes worth approximately the same amount the government would allocate for family assistance, and the utility cut protection and defence funds.

The leftist opposition would increase the public burden by 3240 billion forints, the proposals including introduction of a “carbon tax” of 200 billion forints, as well as corporate tax increase aimed at collecting an extra 2,360 billion forints, Varga said.

According to Varga, the opposition proposals are aimed at “eating up” budget reserves, through spending 1,900 billion forints as opposed to the originally reserved 1,260 billion forints.

“Our purpose is to preserve our achievements and maintain stability even amid a wartime crisis,” Varga said, adding that passing the opposition proposals into law would result in a higher deficit and state debt.

As we wrote earlier, utility price cuts and defence spending are the factors of economic policy defining the 2023 budget, Finance Minister Varga said in parliament, presenting the 2023 draft budget, details HERE.