Minister of State for Taxation and Finances at the Ministry of National Economy Gábor Orbán told national TV channel M1 on Monday that Hungary’s government debt level increased to only 77.2 per cent of the GDP by the end of the first quarter from last year’s 76.9 per cent; this represents a very slight increase, considering that household debt is typically generated in the first two quarters of the year.

The Minister of State emphasised that it is still the combination of disciplined budgetary policy and a well-performing Hungarian economy that can gradually but visibly reduce the level of government debt.

The central government deficit for the previous quarter was reduced by the surplus of local governments and the social security fund. As Mr. Orbán pointed out, the current budget deficit of the last twelve months totals only 1.9 per cent

He said that the Hungarian economy’s performance consistently offers surprises: domestic sectors “have found their feet”, and the economy is now not only driven by exports, but also by domestic consumption.

This is also good news, because tax revenues can be collected – one factor which has enabled the Government to include significant tax cuts in its draft Bill, the Minister of State emphasised.

He stressed that the financing capacity of households is at a record high level: within one year household savings have reached 7.5 per cent of the GDP, which represents an outstanding rate. This can mostly be explained by the fact that taking out loans has not been typical in the past period and repayments are ongoing; additionally, the measures aimed at making banks accountable have also significantly contributed to reducing outstanding repayments.

(Ministry for National Economy/MTI)