Hungary’s Ministry of Finance says it has uncovered almost HUF 400 billion (EUR 1.1 billion) in previously undisclosed spending commitments during its review of the 2026 state budget, claiming the country’s inherited fiscal position was significantly worse than officially presented.
According to Finance Minister András Kármán, the review found around HUF 398–400 billion in expenditure that had not been included in the budget approved under the previous administration. The ministry argues that, without corrective measures, Hungary’s budget deficit would have reached 7.5% of GDP this year and could have climbed to 8.3% if expected EU recovery funds had failed to materialise.
Ministry blames campaign spending and hidden commitments
The Finance Ministry said the 2026 budget was originally drafted with a deficit target of 3.7% of GDP. According to the ministry, this was later internally revised to 5%, and by the time of the government handover, officials were already forecasting a 6.8% deficit.
The latest audit concluded that several factors had pushed the expected shortfall even higher.
The ministry attributes much of the deterioration to election-related spending introduced by the previous government, including the 14th-month pension, housing support for public-sector employees and tax cuts. Together, these measures are estimated to have increased the deficit by 1.3 percentage points of GDP.
It also cited costly revisions to major state contracts, including the 35-year motorway concession, the Budapest–Belgrade railway project and rail development linked to the industrial park in Iváncsa.
Nearly HUF 400 billion in additional liabilities
Beyond previously identified pressures, officials say the budget review uncovered almost HUF 400 billion in further spending commitments that had not been reflected in the budget. According to the ministry, these include:
- HUF 112 billion linked to a weaker-than-expected municipal budget balance;
- HUF 46 billion in additional healthcare spending;
- HUF 56 billion for the M49 motorway and other road developments;
- HUF 112 billion related to advance payments involving state-owned defence company N7 Holding;
- HUF 72 billion in space industry service fees paid to 4iG.
According to the ministry, these items were previously unaccounted for in the official budget framework.
EU funding seen as key to improving outlook
The government argues that the fiscal outlook has improved thanks to its agreement with the European Union, which it says will unlock funding from the Recovery and Resilience Facility. According to the ministry, access to these funds is expected to reduce this year’s deficit by 491 billion forints, equivalent to around 0.5 percentage points of GDP, even after taking into account additional borrowing under the programme.
Officials also pointed to the strengthening of the forint and the planned restructuring of certain public institutions as factors helping to improve the fiscal picture.
New budget plans due later this year
Despite the revised projections, the government has not yet announced a new official deficit target. The Finance Ministry said it will present a revised 2026 budget at the end of August, including additional measures aimed at reducing the deficit.
A draft budget for 2027 is expected in October, alongside an updated medium-term fiscal strategy. The government says the plan will be designed to bring Hungary below the European Union’s 3% deficit threshold by 2030, one of the key fiscal criteria for adopting the euro.
The Finance Ministry’s assessment represents the government’s position on the state of the public finances following its review of the inherited budget. The previous government has not responded to the latest claims.
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Mihaly Varga, the former Minister of Finance of the “ill-fated” Victor Mihaly. Orban led Fidesz Government of Hungary – voted out of office HUMILIATED in Defeat by the people of Hungary – the POWER of our Vote.
Mihaly Varga- a founding Father of the Fidesz Political Party along with his FRIEND – whom he was remains of ADALATION – Victor Mihaly. Orban.
Mihaly Varga near on (11) eleven years as our Minister of Finance expiration date circa 2024.
Prior to that, the name Mihaly Varga held positions, of Senior Ministerial appointment(s) – that he held, with the “blessing” support within the Victor Mihaly Orban “regime” – being an “inner sanctum” member of the Orban “clan” – the “heinous” clan, that in the positions Mihaly. Varga was appointed – that he influenced, designed and contributed – put into place and introduced to the Economic & Financial functionality operation in Hungary.
Mihaly Varga as Finance Minister of Hungary was a cataclysmic DISASTER.
Mihaly Varga – when “Shuffled” moved to his present “position of favour” by Victor Mihaly. Orban in 2024 to be the Governor of the Central Bank of Hungary – the economic and financial “landscape” or broadsheet picture in Hungary which was of Mihaly Vargas creation & OWNERSHIP – his design – it resembled an absolute WRECK – a cataclysmic gargantuan DISASTER.
Mihaly Varga – this article subject – it is known that Mihaly Varga was a PRINCIPLE player in the COVER up of the REAL the FACTUAL Horrendous debt – the black “nadir” hole of the Economy of Hungary.
WHY in the last (2) two years under Mihaly Vargas- Finance Minister appointment – did he approve – sign off on – creating MORE humongous Government Debt in Borrowings principally from China – increasing DEBT, greater individual DEBT on millions of millions Hungarians -who were living then (2) two million of us in Poverty, and we had to PAY ???
WHY did the incompetent – look at his VILE Legacy – the CHAOS – what he created – MESS – what he left us as a “Dud” – Minister of Finance.
Mihaly Varga by “Learned” brains of far greater intellectual ability and “training” in Economics and Finance – not just in Hungary but in the European union – it was openly discussed, that the name – Mihaly Varga – the “friend” who enjoyed the total protection & support, was a “Gofer” of Victor Mihaly. Orban- his fellow founding father of Fidesz – his Prime Minister and Leader of the Political Party of “in part” his founding – it was openly talked about that Mihaly Varga – would as he DID – deliver us Hungary to represent a country that our balance sheet resembled a WIPE Out.
Mihaly Varga – his “shuffle” to the Governorship of the Central Bank of Hungary – the “whisper” in his “large” ears – that you will be the next President of Hungary and the end of the term of the present “under seige” for all the right reasons President of Hungary – Sulyok Tamas who must be removed – outed from office being a “cloistered” but within the “inner sanctum and the Oligarchy – over decades a POWER play member of the Fidesz Political Party.
Mihaly Varga – must NOT survive – must be PURGED – part of this process that we are witnessing being effectively carried out by our new Government under the Prime Minister – Peter Magyar – the Tisza Party.
Hungarians – we are witnessing what is a process of methodical dismantling of the Fidesz Regime and the end of what we SEE – the CLEANING out – removing individuals like Mihaly Varga who cheated us- lied to us and STOLE from us, that “filled there pockets” had there “palms greased” grew there personal and family wealth status/postion through Cheating and Abusing us in millions Hungarians and our country – Hungary.
We have a RIGHT individually and as a country – Hungary to Seek Justice.
Democracy gives a RIGHT to Seek Justice.
Mihaly Varga – look at his LEGACY – what he DELIVERED us – what he took gained from us as a Senior Minister, a founding Father of the Fidesz Political Party.
Shameful – and must be sooner than later part of the Tisza PURGH – for he has “blood” on his hands and must be bought to answer for his knowledge and approval of actions that DELIVERED us to be a country in an economic and financial = darkened place.