Next year’s budget will serve people who earn their living from work, and it will improve living conditions and bolster the financial security of families, Minister for National Economy Mihály Varga said at a press conference that followed the final vote on the 2018 Budget.

Measures are focusing on the support of families, wage hikes, tax reductions and the backing of enterprises’ pro-efficiency efforts. This one is the third year when families, enterprises and other economic stakeholders have a chance to gain insight into planned economic and social policy measures related to the following year’s budget half a year before the law enters into force, he pointed out.

Next year, everybody can once again take one step ahead, and as a result Hungary will continue to grow stronger, Mihály Varga stated.

The 2018 Budget assumes economic growth of 4.3 percent, a state budget deficit of 2.4 percent and an inflation rate of 3 percent for the year, while the government debt-to-GDP ratio is predicted to continue to fall, he added.

As he stressed, the Government’s objective has remained unchanged: every layer of society should enjoy the benefits generated by the performance of the Hungarian economy.

Accordingly, within the budget there are extra resources of several hundreds of billions of forints for every field, especially in terms of housing and family incentives. Thanks to wage hikes and tax reductions, the financial status of people earning their living from work and the competitiveness of domestic enterprises are set to improve.

As a result of tax cuts, next year HUF 260bn more will be left at families and enterprises. Out of amendment proposals, only those have been endorsed which do not jeopardize fiscal stability.  Among extra items earmarked for cultural and social purposes, the HUF 20bn package of measures aimed at tackling demographic challenges must be highlighted, he said. These measures include the debt assumption by the state of a certain amount of some families’ mortgages; the debt assumption by the state of the student debt of mothers with three or more children; the extension of the eligibility period of child-care benefit for mothers with tertiary education diploma; maternity benefits and the so-called baby bonds will become available for Hungarian citizens living across the border; and a new daycare centre development scheme will be launched, he said.

Next year’s budget makes Hungary a country where it is worth working and establishing a family. The Government does everything at its disposal to support such efforts and provide a predictable vision of the future for Hungarian people and families, Mihály Varga emphasised.

(Ministry for National Economy)