Hungarian Prime Minister Péter Magyar has outlined a series of economic measures, welfare commitments and government reforms in his first major television interview since taking office, saying his administration is uncovering financial obligations left behind by the previous government that are “worse than expected”.

Speaking to RTL in a pre-recorded interview broadcast on Saturday evening, Magyar said families would receive a HUF 100,000 (appr. EUR 278) back-to-school support payment as early as August, while pensioners could begin receiving the first instalment of a new pensioner SZÉP Card benefit in the autumn. The prime minister noted that just 40 days had passed since the election and that his government had been in office for only two weeks, describing it as the fastest government formation in Hungary’s modern history.

The state budget still holds many surprises

A significant part of the interview focused on the state of public finances inherited from the previous administration led by Viktor Orbán. Magyar said his government was not interested in a “witch hunt”, but argued that Hungarians deserved to know the true condition of the country’s finances. He claimed that the new administration had discovered numerous commitments and contracts signed shortly before the change of government.

Using a metaphor, the prime minister said that not only “skeletons” but sometimes “entire cemeteries” were falling out of closet as officials reviewed state accounts. According to Magyar, the budget deficit is likely to be significantly higher than previously forecast. While the 2026 budget originally targeted a deficit of 3.7% of GDP before being revised above 5%, he claimed internal estimates suggested it could reach between 6.8% and 7%.

The government is currently conducting a full audit of public finances, with Finance Minister András Kármán preparing a detailed inventory before work begins on a revised budget expected by the end of August, as reported by Telex.

Lower salaries for politicians

Magyar also announced substantial cuts to the salaries and allowances of senior politicians. His own gross monthly salary will be HUF 3.8 million (EUR 10,590), consisting of HUF 2.3 million (EUR 6400) as prime minister and HUF 1.5 million (EUR 4180) as an MP. This compares with the approximately HUF 7.8 million (EUR 21,700) gross monthly salary reportedly earned by Orbán before leaving office.

The prime minister said “self-restraint and humility” would guide the new government’s approach to public spending. He added that reductions to parliamentary allowances, office expenses, accommodation and telephone budgets could save the state tens of billions of forints.

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EU funds and economic recovery

Magyar also revealed that a political agreement with the European Commission on unlocking suspended EU funds is expected to be signed next Thursday. The government aims to secure access to EUR 10.4 billion in recovery funding, which it hopes to use for economic development, transport projects and energy infrastructure upgrades.

Looking ahead, Magyar said Hungary could achieve around 2% economic growth this year and, if reforms succeed, eventually grow two to three percentage points faster than the EU average, helping the country close the gap with more developed member states.

Read more: Hungarian FM Anita Orbán says investigation of stolen EU funds can start in days