The Ministry for National Economy (NGM) is aiming to build a strong and competitive economy which brings success and opportunities for everyone, Mihály Varga said at a press conference where he introduced his Ministers of State.
The Minister added that a window of opportunity for growth has been opened for the Hungarian economy and – compared to the situation four years ago – economic policy no longer needs to deal with crisis management or fight to avoid state default.
He stressed the importance of re-industrialization which can turn Hungary into one of the most competitive countries in the region and a growth engine. Enterprises, he stated, will be stimulated to expand and be more innovative, while the Government will also focus on the efficient utilization of EU funding and a prudent fiscal and financial policy.
He emphasised that they are projecting a fiscal deficit of below 3 percent for the coming years, while budget revenues and expenditures will be planned in a way to optimize long-term economic and employment growth.
Speaking about the taxation system, he said that new tax measures introduced over the past four years will remain or “taking into account fiscal manoeuvring room these can be modified for the better”, while decreasing taxes on labour and providing tax incentives for families with children continue to be tax policy priorities. He added that the Job Protection Action Plan and taxes on consumption are expected to be kept in place.
With regard to the new industrial strategy, the Minister said that the number one objective of the Government is to boost industrial output as this sector constitutes 23 percent of Hungary’s GDP. The Government plans to assist sectors of large growth potential such as tourism, food industry, logistics, vehicle manufacturing, electronics and healthcare.
He emphasised that these objectives will be bolstered by enterprise development programmes and in 2014-2020 Hungary will devote some 60 percent of avaialable EU funding to implementing economic development goals. Accordingly, special emphasis will be placed on improving the competitiveness and export potential of market participants, boosting employment and micro-credits as well as on implementing growth-focused local and regional development projects.
Mihály Varga stressed that the Government will continue to cut red tape and thus create a more favourable business environment for SMEs. They also intend to create a stable, strictly regulated and mainly Hungarian-owned banking system and provide a long-term solution for forex borrowers which “will hopefully come soon, following the verdict of the supreme court”.
Mihály Varga also introduced NGM’s seven Ministers of State, of which three people continue in their former posts: Gábor Orbán as head of the State Secretariat for Tax and Financial Regulation, Sándor Czomba at the State Secretariat for Employment and Judit Gondos at the helm of the Office of the State Secretary.
The other appointees are the following: András Tállai (State Secretariat for Parliamentary Affairs), Péter Benő Banai (State Secretariat for Public Finances), Béla Glattfelder (State Secretariat for Domestic Economy) and Balázs Rákossy (State Secretariat for the Utilization of EU Funds).
(Ministry for National Economy)
