The Government is putting the 2013 Budget Discharge Act before the National Assembly. 2013 was the year of budget stability and of a growth upturn. Thanks to budgetary discipline, last year was the third year in a row in which the budget deficit remained under 3 percent. In June 2013, Hungary freed itself from the nine-year excessive deficit procedure, which was the fault of previous socialist governments, and in August it repaid the country’s IMF loan ahead of schedule. In addition, all this was achieved while the country succeeded in realising new economic growth, the economy set off on a permanent growth trajectory, government debt diminished and the burdens of both families and employees were reduced.

As noted in the report published by the National Audit Office, the implementation of the 2013 budget conformed to legal requirements, the Budget Discharge Act is sound and the data included therein is reliable.
The state implemented measures that were primarily aimed at reducing the operative costs of the administration. Thanks to the restructuring of the tax system, the burdens of both families and workers were reduced. Sectors that used to realise extra profits were also made to contribute to the bearing of public burdens, as a result of which additional funding became available to several areas. The reduction of public utility charges began in January 2013, and in September teachers began receiving increased salaries, pay rises for healthcare employees continued and new tax incentives designed to encourage employment were introduced.

With regard to budgetary discipline, Hungary became one of the European Union’s best-performing countries. Our budget deficit to GDP ratio was successfully kept at under 3 percent for the third consecutive year, and in 2013 the deficit to GDP ratio was 2.2% when calculated according to European Union methodology. Of the V4 countries, only the Czech Republic performed better, and the performance of both Poland and Slovakia remained below that of Hungary.

Last year’s macroeconomic processes also developed more favourably than expected and much more favourably than the European Union average. The gross national product increased by 1.1%, in comparison to the 0.9% forecast when the budget was published. Inflation was also lower than expected, with prices increasing by an average of only 1.7% in 2013. The debt rate (calculated using EU methodology) decreased to 79.8% from 79.2%, meaning that government deft fell for the third year running, something that only two out of the European Union’s 28 member states were capable of.

Therefore, in addition to budget stability, the reduction of the government debt, the beginning of new growth and the stabilising of inflation were all successfully realised in 2013.

(Government Information Centre / Ministry of National Economy)