PM Orbán says employees with children are almost as well-off financially as childfree workers

Employees with children are almost at the point that they are no worse off financially than their child-free peers, Prime Minister Viktor Orbán said in an interview to public radio on Friday.

Orbán also said there was keen interest in the state’s 3 percent mortgage deal for young homeowners, which would lead to a rapid expansion in home-building.

Orbán said the government maintained a pro-family policy aimed at producing a higher birth rate, and there should not be a financial penalty for people starting a family.

Indeed, they would be better off financially in the future, he added. “We’re not there yet, but we’re getting to the point that someone won’t be worse off financially initially if they have a child…”

In western Europe, he said, migration was used to fill demographic gaps. “[If] they don’t have their own children, then [they] replace them with migrants,” he declared, adding that Hungary preferred to sweep aside money hurdles that hindered young people from starting a family.

“The West wants Hungary to be an immigration country,” he said. “But Hungary won’t compromise on immigration.” Taking average earnings, families with the CSED benefit now have a tax exemption which adds HUF 78,000 (EUR 196) each month to their income, while those with GYED support enjoy additional income of HUF 43,000 (EUR 109), he noted.

The prime minister also listed various tax deductions for children, with families of three children saving between HUF 99,000 to 148,000 (EUR 99 to 379). Further tax relief of this kind is in the pipeline, he noted.

Moreover, the 25 year mortgage deal with a fixed 3 percent interest rate free of exchange rate risks was a boon for first-time buyers, he said, adding that people were showing keen interest in the scheme in which borrowers of HUF 20 million (EUR 50,515) can save HUF 60,000 (EUR 152) each month compared with a market loan.