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Lawmakers raise 2019 budget revenue, expenditure targets

Lawmakers raise 2019 budget revenue, expenditure targets

Parliament on Monday voted to raise the revenue and expenditure targets of the 2019 budget by 267.5 million forints (EUR 830,000).

Lawmakers approved the amendments with 123 in favour and 49 against.

The amendments raise the revenue and expenditure targets to 19,580.4 billion forints and 20,578.8 billion forints, respectively, leaving the cash-flow based deficit unchanged at 998.434 billion forints.

One of the most substantial amendments is one that raises the cap on the surety stock undertaken by guarantor Garantiqa Hitelgarancia with state counter-guarantee to 750 billion forints from 650 billion forints at the end of December 2019, with the aim of facilitating access to credit for SMEs, in particular micro enterprises.

New-Year

Moreover, the government submitted a bill on highlighted developments in Budapest.

The bill defines how the state will be involved in major developments in Budapest, including a new Student City.

According to the bill sponsored by Gergely Gulyás, the head of the Prime Minister’s Office, future developments in Budapest will receive highlighted status if, among other conditions, they are financed by the government or by the European Union. The bill also defines “top international sporting event”.

A state nonprofit will be responsible for the preparation of key developments in Budapest, investments, planning and licensing, as well as the organisation of major international sporting events.

Plans are also afoot for the development of an athletic stadium with accompanying facilities, leisure park and rowing center as part of the Student City in southern Pest and northern Csepel.

The bill also includes plans for the Buda Castle and its surroundings. Just as the development of Kossuth Lajos Square in front of Parliament was regulated by a special law, the government argues that Buda Castle, from the Dísz Square to the Royal Palace, should be similarly regulated, with the state taking control of the area from the municipal council.

The bill’s proponent also seeks to amend legislation on investments of major importance for the national economy, complementing it with the term “high-priority public investment” covering related investments in energy, transport development, environmental protection, water protection, disaster management, defence, national security, public administration, education, health, research and development, culture, heritage, sport and urban development.

Also the bill aims to change the 1996 corporate tax and dividend law and the 2004 law on film production in light of the European Commission’s approval of an increase of the tax subsidy from 25 percent to 30 percent as part of the Hungarian film support programme.

Featured image: MTI

Source: MTI

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