Mihály Varga, the finance minister, has said Hungary’s economy is expected to grow by 3-4 percent this year, and tax policy would underpin growth.
Varga said sustainable growth was only viable if there was a balanced economy.
In a lecture given at Károli University in Budapest on Thursday, he noted a recent debate concerning whether fiscal policy was “tight enough”, and said that certain programmes that were already under way would suffer and result in serious social harm were budgetary resources to be withdrawn.
Whereas during the 2008 crisis, the government at the time stripped one month’s salary from the public sector and a month’s pension from the elderly, the current Fidesz government did not “retreat” when the going got tough. He cited the policy of creating one million jobs over a decade having resulted in, among other things, a more stable and sustainable pension system.
Also, the lowest corporate tax rate in Europe and the third lowest personal tax rate had a serious “whitening effect” on the economy, he said.
Regarding the budget deficit, Varga said achieving a shortfall of below 3 percent appeared to be a challenge, and the deficit last year was likely to come in higher than planned once final data are available, one reason being higher interest paid on Hungarian state debt and another being the increase in energy prices.
But local councils were not indebted and their finances generally in a healthy state, though energy prices had also weighed on localities, he said, noting that between 2011 and 2013, the state took over debts of 1,300 billion from local councils and tightened borrowing.
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4 Comments
Finance Minister – Mihaly Varga being the “other” half of the pair, that have of “there doing” delivered Hungary, to the point of Economic ruination that we.
Orban & Varga they where WARNED pre the outbreak of the Corona Virus outbreak of February 2020 in Hungary, that the Economic & Financial Policies they JOINTLY signed off on, had IMMENSE doubtfulness – “riddled” with being exposed to high risk DANGERS – associated to them.
Orban & Varga didn’t LISTEN followed on dismissing CRITICISM from those of greater intellectual knowledge in Financial & Economic management, to DELIVER us, the place, the UGLY worsening cataclysmic BLACK Hole we are today.
Varga has repetitively called the Economy – WRONGFULLY.
Respectability of this Finance Minister is at an ALL time low, that any future forecast(s) he makes on our Economy treated DISMISSIVELY.
The Hungarian Finance Minister is a total failure, and it is not worth reading what he said.
Just look at his history as the Forint was 300 against Pound Sterling when he started, and now it is 460 making the Hungarians poor against the foreigners. No wonder, sadly, Hungary now is one of the poorest country in the EU.
Nick – we are of the 27 Members of the European Union of Country’s – number 26.
APPALLING.
Mihaly Varga – the Hungarian Finance Minister, has become an EMBARRASSMENT to Hungary.
We may have the EU´s lowest corporate tax rate – which is great for companies.
HOWEVER – we also have the WORLD´s highest VAT rate at 27 percent. Which is eventually fully paid by the end customer (“person in the street”).
https://www.oecd.org/tax/tax-policy/revenue-statistics-highlights-brochure.pdf
Take a look at these statistics and decide for yourself who is subsidizing what.