MTI-ECONEWS – MPs approved the government’s 2026 budget in parliament on Tuesday.

The budget was cleared with a vote of 133 for, 47 against and no abstentions. The budget targets revenue of HUF 39,563bn (EUR 98.11bn) and expenditures of HUF 43,781bn (EUR 108.57bn), resulting in a deficit of HUF 4,219bn (EUR 10.46bn). The budget assumes GDP growth of 4.1pc and average annual inflation of 3.6pc. The deficit target relative to GDP, calculated with the European Union’s accrual-based accounting rules, is 3.7pc.

Debt maintenance costs are set to fall to around HUF 3,362bn in 2026 from HUF 3,876bn in 2025. Revenue from personal income tax is set to decline to HUF 4,837bn from HUF 4,905bn. Revenue from VAT is expected to climb by around HUF 600bn to HUF 8,793bn. Spending on state investment is set to rise to HUF 486bn from HUF 352bn. The budget earmarks around HUF 192bn for extraordinary government measures. Year-end state debt, relative to GDP, is set to decline to 72.3pc in 2026 from a targeted 73.1pc at end-2025.

The preamble of the law identifies the matter of whether or not Hungarians’ money goes to Ukraine as the most important one in 2026. “In the 2026 budget, we will channel Hungary’s resources to supporting Hungarian families, not to Ukraine,” the authors of the legislation said.

They highlighted the implementation of “Europe’s biggest family tax reduction programme”, pointing to a doubling of family tax allowances and the gradual rollout of personal income tax exemptions for mothers. They also pledged to maintain the regulated utilities price scheme for households and payment of the annual pensioners’ bonus and noted that the minimum wage would rise by 13pc, while Hungarians in uniform would get a service bonus equivalent to half a year’s pay, adding up to HUF 450bn (EUR 1.12bn).

Resources allocated for family policy measures add up to HUF 5,600bn (EUR 13.89bn) in the budget, including HUF 800bn earmarked for the regulated utilities price scheme.

A PIT exemption for mothers raising two children will leave HUF 320bn with taxpayers, while the doubling of the tax allowance for families raising children will add up to HUF 290bn.

The budget earmarks close to HUF 5,050bn (EUR 12.52bn) for economic development, including HUF 2,200bn from EU transfers. The preamble underscores more than HUF 4,000bn in spending on education and HUF 3,919bn in healthcare expenditures. Defence expenditures are targeted at HUF 2,016bn, in line with Hungary’s commitment to NATO to keep defence spending at 2pc of GDP.

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Update

Lawmakers vote on food vouchers for pensioners

MPs voted on the award of food vouchers to pensioners in parliament on Tuesday.

The measure, part of a package of legislation related to the 2026 budget, was approved with a vote of 133 for, 46 against and a single abstention. The law mandates the government to decide on the value of the vouchers and other details. The government earlier pledged HUF 30,000 in food vouchers for each Hungarian pensioner this year. Ahead of the vote on Tuesday, state secretary Róbert Zsigó said Magyar Posta would start delivering the HUF 30,000 food vouchers to around 2.5 million pensioners in the autumn. The vouchers are valid until the end of the year, he added.