Reserves in three budget estimates of the 2017 Budget total HUF 205bn, which amount guarantees that tax reductions continue, the government debt-to-GDP ratio falls further and the budget remains balanced even if external conditions worsen, Minister of State for Public Finances Péter Benő Banai told news channel M1on Tuesday.

Péter Benő Banai added that relatively low crude oil prices were expected to remain for the next one or two years, a highly favourable factor for Hungary, a raw materials importer.

Reserve funds valued at HUF 205bn are much larger than that of 2015 or previous years, and they are designed as buffers for unforeseeable developments.

As the Minister of State noted, the government debt-to-GDP ratio is set to be reduced from this year’s 74.5 percent to below 70 percent by 2018. Hungary is lucky as the Basic Law stipulates the reduction of state debt, and any government is obliged to adopt and implement budgets that effectively lower state debt.

This objective is also safeguarded interim reports of half-yearly data that must be submitted to the Fiscal Council. These regulations have ensured that the indicator has edged lower each year since 2011, the Minister of State pointed out.

(Ministry for National Economy)