Hungary plans public debt / GDP ratio below 60 pc in 2022, says economy minister

Economy Minister Mihály Varga has pinpointed a public debt of 60 percent of gross domestic product as a goal for 2022.

Varga also told MTI that Hungary’s convergence programme for the 2018-2022 period sent to the European Commission includes a growth projection similar to its economic expansion assumption contained in Hungary’s last convergence programme.

He said growth well above the EU average means Hungary will be able to catch up with the rest of the bloc faster. By maintaining a high growth rate while pursuing a disciplined fiscal policy, the budget deficit and public debt ratios will both decline, he added.

A further goal is for the cash-flow budget to be in balance by the end of the current parliamentary cycle, Varga said.

The wage burden is planned to fall to below the regional average by 2022, he said.

Also, as companies and educators become more closely connected, the number of corporate training places will expand, further boosting employment growth, Varga said.

Varga said the most important task of the government’s economic policy in the coming four years would be boosting the rate of growth. Improving competitiveness and productivity is key to this goal, requiring support for innovation and infrastructure investments that result in products and services with increased value-added, he said.