Orbán: Government aims at securing middle-class lifestyle in 2016
Budapest, February 15 (MTI) – After positive economic trends in 2015 Hungary’s goal in 2016 is to start establishing a middle-class standard of living, Prime Minister Viktor Orban said in parliament on Monday.
The government has since 2010 successfully led Hungary out of a financial bankruptcy and reduced debt, Orbán said. Results show that the chosen tools have been effective, he said, after briefing lawmakers about 2015 budget figures, the size of the budget deficit and public debt, and unemployment numbers. Nominally debt is still growing, and to stop this, a “balanced budget” will be needed, he said.
The three goals serving the aim of helping “everyone move forward a step” this year are tax cuts, home creation measures and strengthening families, he said, adding that personal income tax was cut by a point as of January this year, and VAT on pork and new homes has been reduced. Families with children receive more tax breaks and wages have been hiked, including the minimum wage.
Orbán said the Hungarian economy’s “capabilities” have put a limit to wage hikes, but law enforcement workers received a 30 percent hike last year and will receive 5 percent more this year and next, each. In higher education a wage hike of 15 percent has been administered and teachers, who are treated as priority, have received wage increases each year since 2013.
“Hungarians generally trust teachers which is why we trust them with our most precious possessions, our children, too”, he said. The government will support talks now under way with teachers and “aim to reach an agreement”, he said, in reference to teachers’ demonstrations over the weekend.
The government spent 12.8 billion forints (EUR 41.3m) on raising the salaries of health-care workers in January, mostly for nurses and doctors. Resident doctors with a speciality received 151,000 forints support a month last year and GPs will get the raise again that they got last year, Orbán said. He added that staff working in public administration in district offices will also get a 30 percent wage hike from July.
“These are the wage increases that the government can offer responsibly with the current economic output,” he said.
Photo: MTI
Source: http://mtva.hu/hu/hungary-matters
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