Hungarian Socialist MP calls for 2023 budget rethink

The Socialist head of parliament’s budgetary committee on Wednesday called on the government to submit a new budget, arguing that “pushing through” the budget as early as July had been a “mistake” in a volatile economic environment.

Zoltán Vajda told a press conference streamed on Facebook that he had invited Finance Minister Mihaly Varga to the committee’s meeting to discuss the country’s financial situation, but the committee’s Fidesz majority removed the hearing form the agenda.

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Vajda called the current budget for 2023 “fictitious”, noting the law calculated with FY inflation of 5.1 percent next year, insisting that in reality it could go as high as 20 percent. While the budget forecasts a 4,2 percent GDP growth, the economy could actually dip into recession, he said. Meanwhile, the budget calculates with an exchange rate of 370 forints per euro, whereas the Hungarian currency currently hovers around 430 forints, he said.

When three such fundamental components of the budget deviate from expectations, a new budget must be passed, he said.

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Source: MTI