In coming years the country must increasingly utilize domestic resources to boost growth, Minister for National Economy Mihály Varga said at Tusnádfürdő.
The Government is glad to receive external resources from the EU but these are limited in use, he added.
Currently, EU cohesion funds account for some 6 percent of GDP, while development funds from domestic resources comprise 4-4.5 percent of it. The Government has recently adopted industrial development and electromobility programmes; expectations are high concerning the new housing programme and massive funding is earmarked for the development of tourism. An investment subsidy programme for large enterprises has been launched for companies that cannot receive EU funding. The very first results of this scheme are promising, as more than 500 new jobs have already been created, he pointed out.
Through its economic policy the Government has been reducing state debt, stabilizing the budget and boosting fiscal revenues, he said. While the state debt-to-GDP ratio was above 80 percent in 2010, by now it has fallen to 75 percent, and it is set to edge lower next year. “It is a major achievement that we are less and less exposed to foreign lenders,” Mihály Varga stated.
Taxes must also be reduced: VAT on internet, restaurant services and some basic food is cut as of next year, he stressed.
(Ministry for National Economy)
