Fiscal Council head: Maintaining disciplined budget justified

The head of the Fiscal Council (Költségvetési Tanács) said in an online talk on Tuesday that maintaining a “very disciplined budget” and monitoring whether the deficit target of 4.5 percent of GDP can be sustained is justified.

Gábor Horváth noted that Hungary reduced its public debt-to-GDP ratio by 0.6 percentage points last year. While certain European Union member states could make more significant cuts to their debt, 10 countries saw a rise in their public debt, and now 13 member states are failing to comply with the EU’s debt rule, he said.

Hungary’s public debt level is below the EU average but exceeds those of its regional competitors, Horváth said.

Noting the Fiscal Council‘s three-year outlook, Horváth said that keeping GDP growth over 4 percent in the long term required restoring balances and comprehensive competitiveness-related reforms.

As we wrote yesterday, the Hungarian government reports a deficit increase, and the minister sees a positive impact of inflation figures, details HERE.

As we wrote today, Hungarian forint falls sharply as Eurozone political crisis unfolds, details HERE.

Source: MTI