“In addition to eighty thousand small enterprises and sixty thousand families with small children, the government’s economic protection measures are also making life easier for thousands of companies and hundreds of thousands of debtors”, the Ministry of Finance’s Parliamentary State Secretary András Tállai said in a statement published in Hungarian daily Magyar Nemzet on Friday.
In the statement, Mr. Tállai explained: “In view of this, it is ‘at the very least inexplicable’ why the opposition claims the measures introduced so far are insufficient”.
“Many enterprises and families are finding themselves in a difficult situation because of the coronavirus pandemic, and accordingly the government has not only introduced extraordinary economic measures, but also emergency healthcare and law enforcement measures”, the State Secretary pointed out.
“From among the former, the one that affects most people is the moratorium on loan repayments, which may be taken advantage of by hundreds of thousands of customers”, he indicated, adding: “The suspension and restriction of tax and other debt collection proceedings and the postponement of evictions is also easing the situation of many people”.
Mr. Tállai also spoke about the changes to the tax regulations: The waiving of four months of tax payments for small businesses paying itemized tax is affecting 81 thousand small enterprises that are being hit hardest by the crisis situation that has developed because of the global coronavirus pandemic. In addition, a host of companies that find themselves in difficulties are also not having to pay four months of contributions, and employers are temporarily only deducting only a small level of contributions from employees. “Our hope is that as a result of this relief, thousands of enterprises will be able to maintain the jobs of their employees”, the State Secretary explained.
Mr. Tállai said the allowance introduced for families with small children, the fact that the government has extended the payment of maternity leave and childcare benefits that are due to expire, is extremely important. “According to our calculations, some 60 thousand parents are scheduled to lose their eligibility after their 3-year maternity leave comes to an end between March and June, and the government measure is designed to assist them”, he explained.
“Also important is the fact that the government has introduced its measures in a timely manner compared to other countries, and the fact that in recent years Hungary has broken all previous employment records and the economy has a healthy structure, in addition to which the Hungarian economy has been growing at a rate that far exceeds the EU average for years now”, he added.
“The approach of opposition politicians is inexplicable”, he said, explaining that the left-wing liberal opposition has launched an all-out attack on the government’s economic protection measures, claiming them to be insufficient, and ‘voicing obviously demagogic ideas’ that if realised would result in the collapse of the budget.
“Thanks to the measures introduced, loan payments do not need to be made, many do not even have to pay taxes, no evictions are taking place, and ongoing debt collection procedures have also been suspended, while there is money available for healthcare protection”, he highlighted. “All this is too little for an opposition whose leader, Ferenc Gyurcsány, introduced the most brutal possible austerity measures during his time as Prime Minister, when a crisis developed”, he said in summary.
“There will most definitely be no austerity measures now, but the public can count on more economy protection and crisis management measures”, he declared. “This includes the fact that the government may be introducing a customs duty and tax-free status for face masks, respirators and other protective healthcare equipment imported from abroad. This requires the authorisation of the European Union, and the government has already begun the process”, Mr. Tállai said in his statement.
(Ministry of Finance/MTI)
