“The Government would like families who would primarily like to move forward in life through work to be able to plan increasingly boldly”, the Cabinet Office of the Prime Minister’s Parliamentary State Secretary declared at a press conference in Budapest on Tuesday.
Csaba Dömötör told reporters: “The majority of the National Assembly has approved this intention, thanks to which next year’s budget will be the budget of people who make a living from work”.
“Pay increase programmes will continue, family tax benefits will be expanded and Hungary’s security can continue to gain strength, to which the growing economy provides a stable background”, he explained.
Minister of State for Public Finances Péter Benő Banai from the Ministry for National Economy said: “Next year’ budget is a responsible one, the favourable macroeconomic indices are creating an opportunity for extra expenditure, while balance indices are also developing well and economic growth will also be felt in everyday life”.
“The 4.2 percent increase in the gross domestic product (GDP) for the first quarter is promising and the Government is calculating with 4.1 percent growth for the whole year, while the economy is expected to grow by at least 3 percent next year, which is double the European Union average.
According to the Minister of State, the 4.3 percent rate of economic growth represents well over 1000 billion forints in extra revenues for the budget, which is further added to by the fact that the economic is also becoming whiter.
“It is thus evident that the performance of the Hungarian economy is providing the background for extra expenditure”, he added.
Mr. Banai highlighted the priority awarded to families in next year’s budget. “The original draft of the budget bill already included more than 1900 billion forints in subsidies and tax benefits for families, which Parliament has further increased”, he said.
“The total sum of subsidies and benefits provided for families exceeds 4.7 percent of GDP”, the Minister of State told reporters.
“Law enforcement and public safety are a priority area, and the 2018 budget includes 85.5 billion forints in addition funding for this purpose compared to this year”, he explained.
He highlighted the pension premium that will be paid in November, and also next year according to the calculations of the Ministry, and which is tied to the economy achieving 3.5 percent growth.
According to Mr. Banai, both education and healthcare can expect to see a tangible increase in expenditure, with next year’s budget including 116.8 billion forints and 221.2 billion forints in additional funding, respectively, for the two fields.
He also mentioned that since 2010, 556 thousand of the some 700 thousand people employed in the public sector have received a significant, tangible wage increase.
“In total, next year’s budget includes 142 billion forints in additional wage expenditure”, he said.
In reply to a question from the press on the so-called poster bill, which is currently before parliament, Mr. Dömötör said that Jobbik had acquired advertising space for a fraction of the market price, meaning hidden party financing and other economic crimes are suspected of having been committed.
“This is new information, and another reason why the governing parties will attempt to push the Bill through Parliament again, which would create equal conditions for all parties”, he said.
The Minister of State said he trusted that the opposition would support the Bill, which in his opinion is an important step in the fight against corruption. The 9 thousand forints/poster paid by Jobbik is unrealistically low, he said.
“Government expenditure concerning past campaigns is public”, Mr Dömötör noted.
(MTI)
