The 2017 Budget provides stability and security for Hungarian families, and it facilitates the growth of domestic enterprises. It is a key priority for the Government that every Hungarian shall enjoy the benefits of effective Hungarian reforms.
Aiming for predictability and calculability, the Government submitted next year’s budget in the spring session of the parliament, which MPs have debated and adopted in accordance with every guarantee of the legislative process. Thus, everybody can make timely financial plans for next year. Neither the Fiscal Council nor the State Audit Office raised any substantial objection to the bill, and the budget draft was considered to be well-established and realizable.
Next year, lower VAT rates will leave HUF 55bn more at households, while the extension of family tax allowances adds some HUF 60 000 on average to the annual income of a family with two children.
Thanks to the largest housing programme in recent years, several thousands of families may purchase their own homes.
Pensions are set to preserve their purchasing value, while the reduction of VAT on certain kinds of food is practically another cost reduction for pensioners.
Besides that, more resources are earmarked for each field, and new or continued career models honour the work of public sector employees. The Government allocates a significant amount of domestic and EU funds to assist growth-focused development projects. The 2017 Budget has been slightly modified structurally: domestic operational and development expenditures and revenues are separated from EU development expenditures and revenues, and only the latter category is allowed to post a deficit at year-end.
The Government projects economic growth of 3.1 percent, low inflation rate and ESA fiscal deficit of 2.4 percent, while it also targets a lower general government debt-to-GDP ratio – in line with targets laid down in the Convergence Programme.
(Ministry for National Economy)
