Hungary’s 2026 ‘anti-war budget’ submitted: Orbán cabinet details key spending plans
National Economy Minister Márton Nagy submitted the government’s 2026 budget bill to parliament on Tuesday.
Submitting the bill to László Kövér, the house speaker, Nagy said that the most important question for 2026 was whether “Hungarian money would go to Ukraine”. He added that the Brussels bureaucracy and the majority of the European Parliament wanted to require European countries, and Hungary too, to support and arm Ukraine. He said the 2026 budget bill earmarked Hungary’s resources for Hungarian families, not Ukraine. The anti-war budget puts families with children first, he added.
Nagy said HUF 4,800bn (EUR 11.86bn) had been allocated for family policy goals next year. Including spending on the regulated utilities price scheme for households, family support will add up to HUF 5,600bn (EUR 13.84), he added.
Hungary will undertake Europe’s most significant tax cut programme in the interest of families, he said, adding that a personal income tax exemption for mothers of two and three children would add up to HUF 320bn and the doubling of the family tax allowance would come to HUF 290bn (EUR 720m). He said that tax preferences will leave more than HUF 1,300bn with families.
He said pension-related expenditures, which affect over 2 million people, will reach HUF 7,700bn in 2026, including an annual pensioners’ bonus and an expected growth-linked premium.
A 13pc minimum wage rise will be applied in public administration, while salaries for people on municipal council payrolls will climb by 15pc, following a 15pc pay rise in 2025, too, he said. Increases of teachers’ salaries will continue, and Hungarians in uniform will get a bonus equivalent to six-month’s salary, adding up to HUF 450bn, he added.
He said interest payments on retail government securities will come to HUF 800bn in 2026. Nagy said the budget earmarks HUF 5,500bn for economic development spending, including around HUF 2,850bn from national resources. Investment spending will come close to HUF 1,600bn.
He said spending on border defence and protection against illegal migration will amount to HUF 2,016bn, or 2pc of GDP. Expenditures on extraordinary security measures will amount to HUF 1,700bn. Over HUF 4,000bn will go to education, HUF 3,919bn to healthcare, over HUF 653bn to cultural activities, and more than HUF 135bn to church activities. Expenditures earmarked for social and welfare institution services will rise by close to HUF 223bn to HUF 1,600bn.
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Kövér said the budget would be debated starting May 20, and lawmakers could submit amendments to the bill until May 22. He added that MPS will clear those amendments on June 10, and the final vote will take place on June 16.
Fielding questions, Nagy said insurers had pledged on Tuesday to adjust premiums in accordance with the government’s request voluntarily, so no regulatory intervention would be required.
He said consumption would remain the engine of economic growth in 2025 and highlighted the performance of the retail and tourism sectors. He added that the performance of the industrial sector and investments hinges in large part on the recovery of the German economy. Nagy said the budget bill was drafted assuming a HUF/EUR rate of 403. It also assumes average annual inflation of 4.5% in 2025 and 3.6% in 2026. He said the CPI could fall below 4pc around June. He added that as long as food price inflation is over 5pc, a government-mandated cap on markups for a range of food products is justified.
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Hungary first.
Ukraine last, if at all.
Period.
Much German money going to Hungary for many years. Do not forget. Hungary should say thank you. We are the biggest economy in Europe and will be the biggest military!
@michaelsteiner – it appears that if certain Germans get their way, our Politicians would struggle with asserting any “Hungary First!”. Not even talking about the prospect of them building Europe’s biggest defense force. Germany would be utterly dominant. If they then decide to elect a nice populist leader – maybe our Politicians can be their BFF? SCARY.
In Trump speak: “Hungary does not have the cards”!
This “pseudonyms” commentator, the commentary under the name – Michael Steiner – we KNOW all who contribute under this FALSE Name are members of the Fidesz Political Party.
What “lost” sheep they ALL.
Looking at defeat, the growing HUMILIATION on there Leader on there Party, in the lead up to the Spring of 2026 National Elections is ENGULFING them. 😃
Is there “War Psychosis” here as Fidesz has railed about endlessly? These people can’t make a budget without blaming Hungary’s problems somewhere else. To borrow the language of Orban’s hero Donald Trump all of these Fidesz idiots are complete “losers”.
Kleptocracy. Simple. Budget is money out and where it goes…