The latest, 25th business confidence survey conducted by the German-Hungarian Chamber of Industry and Commerce (DUIHK) reflects that 2018 was a highly successful year for the Hungarian economy, Minister of Finance Mihály Varga said, evaluating the study’s results.
“The Hungarian Government is committed to the development of the infocommunications sector, in view of the fact that the digital transition is the key to a high rate of economic growth”, Minister of Finance Mihály Varga declared following talks with European Region Group President of Huawei Technologies James Li in Beijing.
“Hungary is committed to the early realisation of the Budapest-Belgrade railway line development project”, Mihály Varga declared at a meeting with the Export-Import Bank of China in Beijing.
The main factors that characterized the budget in the first quarter were higher revenues generated by economic trends that had offset the effect of tax reductions and higher state expenditures for domestic and EU projects. As a result, the budget closed the quarter with a deficit of HUF 141.9bn. The year-end deficit target and a lower government debt-to-GDP ratio are to be attainable.
The pro-growth tax regime has been a major factor behind the performance of the Hungarian economy. The pro-transparency and pro-business elements of this system may serve as models for other member states, Minister of Finance Mihály Varga said at a meeting of EU finance ministers in Bucharest.
The preparation of the euro-zone budget must not jeopardize existing EU programmes and instruments; accordingly, Hungary regards it acceptable on the condition that funds of the multi-annual budgetary framework and contributions by member states are increased, Minister of Finance Mihály Varga said at an Ecofin meeting in extended format in Bucharest.
Thanks to the improving performance of the Hungarian economy and prudent fiscal management, the government debt-to-gross GDP ratio declined from 73.4 percent to 70.8 percent, while the government budget deficit has come to 2.2 percent instead of the prior estimate of 2.4 percent last year, Minister of Finance Mihály Varga said at a press conference in Budapest. The decrease of 10 percentage points in the debt-to-GDP ratio since 2010 was the fifth largest drop within the European Union, he added.
Earnings in real terms, including family tax allowances, have increased markedly, by more than 70 percent in the period 2010-2018. As in 2017, employees earned an extra month worth of wages in 2018, and this has greatly improved the finances of families.
Brussels is attacking Hungary because of low tax rates but the Government will not back down and give up the family- and tax cuts-focused economic policy, Minister of State for Parliamentary Affairs András Tállai told MTI.
The cooperation between Hungary and the United States plays an important role in the ever-improving performance of the Hungarian economy, said Finance Minister Mihály Varga who received Republican Senator Mike Crapo, Chairman of the US Senate Banking, Housing and Urban Affairs Committee in his office.