Hungary is using around 20 per cent of its annual income for the containment of the coronavirus, and with this the government is placing every fifth forint in the service of families and businesses, Finance Minister Mihály Varga said on Wednesday, after the meeting of the financial task force.

In a video message, Mr Varga said they are setting up 3 funds, to the total value of HUF 2,000 billion. The HUF 633 billion made available in the epidemic containment fund is comprised of 50 per cent of party grants, the taxes levied on multinational companies and the contributions of banks.

The bulk of the HUF 1,345 billion of the Economy Protection Fund comes from the budgets of ministries, through the reallocation of funds and other measures of economy.

The third fund is designed to manage funds received from the EU. “This, however, is empty for the time being as – despite fake news to the contrary – Hungary has received no funds yet for the containment of the virus,” he stressed.

Regarding expenditures so far, he said the government had spent HUF 380 billion on supplies related to the containment of the epidemic, while the economy protection measures adopted to date will leave more than HUF 3,000 billion in the economy. He added that the financial task force is working to ensure that sufficient funds are available for measures yet to be adopted. As a result, there will be money for the reintegration of the 13th month pension, the wage support to be provided for employers, the promotion of investments and the reduction of the social contribution tax and the tax of small businesses.

“In 2010 Hungary managed a crisis successfully once before. With joint efforts, combining our resources and pursuing a wise economic policy, we can now achieve the same,” Mr Varga stated.

(Ministry of Finance/MTI)