The 2016 Budget Bill leaves more money at households through tax reductions, but also on the expenditure side, there will be several fields for which more funding will be allocated, Minister of State for Public Finances Péter Benő Banai told public broadcaster TV1.

As the Minister of State stressed, Hungary’s Basic Law stipulates that general government budgets must lower state debt each year. The current debt reduction roadmap formula will be modified, he added.  Thus, Péter Benő Banai said he hopes that the general government debt-to-GDP ratio will fall by 1-2 percentage points.

He added that the Government aims to finance state debt increasingly from domestic resources, through retail government securities. It is important, as in this way the interest payments on government securities improve the financial status of Hungarian households instead of flowing abroad.

(Ministry for National Economy)