It is a key component of the 2016 Budget that the Government is expecting general government budget deficit to be below 3 percent, Minister of State for Parliamentary Affairs András Tállai told public news channel M1.

He stressed that in addition to a stable deficit figure, it is also encouraging that inflation is expected to remain subdued, the economic growth trend will remain in place and general government debt will fall further.

Speaking of the adoption of the budget bill ahead of the regular schedule, András Tállai pointed out that it is not unusual in Europe to adopt a budget already in the first half of the year. This step was made possible by predictable economic processes and financial trends. It has also been a clear statement for international investors on Hungary’s economic plans and for enterprises that will thus have enough time to prepare for changes coming next year.

The Minister of State emphasised that enterprises will not be burdened with additional taxes, as for the first time in fifteen years, the National Assembly has adopted a budget of tax reductions.

He added that the budget contains a contingency fund of more than HUF 200bn that may act as a buffer for unexpected events such as Grexit, an event that “may or may not take place”.

Some years ago, he said, Hungary was “on the dunce’s seat” of Europe and it had been unable to reach a below 3 percent budget deficit. Due to the strenuous efforts of Hungarians and the Hungarian Government, however, this situation has been changed.

(Ministry for National Economy)