Hungary’s budget in big trouble: grand restriction pack may come after June
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Gergely Gulyás, the Minister of the Prime Minister’s Office, announced in mid-April that the Orbán government would not submit the 2025 budget draft in the spring session to the Hungarian Parliament. That is a clear sign that something is wrong with Hungary’s budget, experts believe. S&P’s latest credit rating came last Friday, and they confirmed that something decisive will come after the 9 June European parliamentary elections.
The government can rewrite the entire annual budget with a trick
Between 2010 and 2023, the Orbán cabinets submitted the first draft of the next budget until May or June, and the parliament accepted it during its spring session. That meant Hungary already had its 2023 annual budget in June 2022.
Opposition parties regularly criticised that procedure but never had a majority to vote the budget bill down. The situation was favourable for the government. Provided there was a need, they could modify the annual budget with decrees.
However, following the COVID-19 pandemic, the Russian invasion of Ukraine and the energy crisis, such modifications rewrote the entire budget. For example, the parliament accepted the 2023 budget in 2022 spring of but rewrote it fundamentally on 29 December 2022.
Long tradition ended
In 2024, the Orbán cabinet decided not to accept the annual budget in the spring session. Probably because the numbers are bad, and their support is at a ‘historic low’ due to the clemency scandal. In this case, ‘historic low’ means that Orbán’s Fidesz would still win the general elections but their support has never been this low since 2010.
Anyway, the government invented the idea of not accepting the annual budget before the outcome of the American presidential elections. They did not clear how that affects the budget of a Central European, EU and NATO member state.
S&P believes that a grand restriction may come after 9 June
Last Friday, S&P, one of the world’s three top credit rating agencies, affirmed their ‘BBB-/A-3’ ratings on Hungary and maintained a stable outlook. However, they added that high-interest costs, sluggish value-added tax revenues, and off-budget activities would pressure Hungary’s fiscal position in 2024.
Let’s defer the bad news until after the European Elections, shall we? Power to the Politicians! Fighting for Hungary – as they’ve spent us into a hole. Let’s buy an airport! Fund a railway without a robust business plan (make the terms a State Secret – why not), increase pensions, build another stadium, etc.
Oh – and EU – please send us money so we can increase teachers, doctors, and nurses salaries!
All is well in the Land of Milk and Honey…
Finance Minister of (9) nine years – Mihaly Varga, of the Victor Orban led Government, as Prime Minister of Hungary, the Fidesz Government of Hungary – what a EMBARRASSMENT goes on exhibiting from FACTUAL exposed KNOWLEDGE – the Humiliation, policies, from Mihaly Vargas his desk, from his Ministerial Portfolio of Responsibilities – on Hungary.
Failure – that we Hungarians are SUFFERING through the WRONGFULNESS of Financial and Economic Policy making, originating from the Minister of Finance – Mihaly Varga and APPROVED by the current Prime Minister of Hungary – Victor Orban.
Be MINDFUL and watch – from our homes, in Cities, in Villages or Hamlets we live across the “lands” of Hungary – be MINDFUL and aware – the ORBAN use of PROPAGANDA – “riddled” and it will grow increase – in being of FABRICATION of TRUTH & Fact.