János Lázár, the Minister heading the Prime Minister’s Office described the 2017 draft budget proposed by the Government as a budget of predictability and security at the 47th Governmentinfo press conference which he held jointly with Government Spokesperson Zoltán Kovács.

2017 budget favours every family

Mr Lázár further indicated that the Government will submit to Parliament its motions regarding the foundations of the budget and taxation next Tuesday.

In his evaluation, the people have made significant sacrifices for stability, and the finances of the State are now in order.

He pointed out: it is important that there is scope for a comprehensive VAT reduction within the realm of basic foodstuffs – as he said, „a reduction of household bills regarding general living” – which will result in a rise in wages and pensions. He argued that the low personal income tax, too, will additionally concern every family, and a monthly tax benefit of HUF 30,000 will be available in the case of families with two children.

Upon speaking about the zero budget, the Minister highlighted that for the first time after long years, tax revenues are higher than the expenditures arising from the operation of the State, and at the same time, the State is also providing ongoing pay rises in a number of fields.

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The Minister said: it is unprecedented after many years that, in addition to EU grants, local funds in the magnitude of HUF 1,600 billion will also be available for developments, which will be used, inter alia, for the construction and refurbishment of roads, the development of cities and priority state projects.

Mr Lázár further highlighted that there have not been this many people in employment in Hungary since 1990, and the number of people in work will reach 4.3 to 4.5 million this year.

In answer to a question, the Minister also pointed out that the Government has not given up on the staff reductions in ministries in the magnitude of 10 to 15 per cent, while the structure and operation of state-owned companies will be reviewed in the second half of the year.

In answer to another question, he explained: the reason for the planned increase in duty revenues is the increase in the real estate market.

Government to launch industrial park programme

Mr Lázár announced at the Governmentinfo press conference that the Government will launch Central-Europe’s most significant industrial park project.

Between 2016-2018 the Government is planning to allocate HUF 150 billion to the construction and development of industrial parks, the Minister said, remarking that the Minister responsible for developments has been authorised to spend HUF 50 billion for this purpose this year.

Mr Lázár said that the programme may be an important pillar of the maintenance of economic growth, and may create as many as 50 to 100 thousand jobs.

He remarked that the Government has already agreed on the construction of industrial parks with 13 county-ranked cities, and they are currently exploring similar possibilities in another 12 cities.

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Government decided to provide aid for dairy producers

The head of the Prime Minister’s Office also informed the press about the decision of the Government to provide aid for local dairy producers. Mr Lázár cited in explanation of the difficult situation of Hungarian dairy producers the abolition of European quotas, the Russian embargo, the slower growth of the Far-East markets and the state of the food industry.

Therefore, in addition to the reduction of the VAT on milk which has already been disclosed, the Government has decided to help dairy producers with priority state grants.

They will additionally support food industry projects, and will also open the possibility of development to large businesses, he said.

They will further explore how milk produced in Hungary can be channelled into the Hungarian public meals system which is about to be reformed, and how milk imports could be restricted as a national health issue because the quality of imported milk is inferior to that of local milk, the Minister said, and promised that milk importers and businesses selling imported milk may expect more stringent inspections.

Government to disclose information related to Alstom funds

Mr Lázár said in answer to a question: the Government will in the next few days disclose to the public all information related to Alstom funds.

In his evaluation, the former socialist and liberal leadership of the capital and the socialist government became entangled in an international crime, and as a result, they also got the country mixed up in this scandal. The details must therefore be clarified.

In reference to the investigation conducted abroad, he indicated that Alstom had received orders through corruption, and both the MSZP Government and former Budapest Mayor Gábor Demszky will have to have something to say on this matter.

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Full rehabilitation of Buda Castle area required

The head of the Prime Minister’s Office pointed out: he is in favour of the full rehabilitation of the Buda Castle area, and said: they wish to implement the Gyurcsány Government’s 2004 resolution regarding this issue, for the purposes of which they have allocated HUF 9 billion.

This clearly indicates that Ferenc Gyurcsány „still had his head screwed on at the time, but since seems to have gone out of his mind, hopefully, not forever but only temporarily”, he said, adding: he sincerely hopes that the former Prime Minister will be ready to support his own decision. He referred to the conclusion of the reconstruction works which have been ongoing since 1945 as an enormous debt, and in his view, the Castle deserves to be in a better state.

The Minister also told the press that after two years of preparations, they submitted their plans relating to the Castle to UNESCO at the beginning of last year, and they intend to observe all heritage protection regulations.

As another reason for the project, he reiterated that, pursuant to a 2011 parliamentary decision, the Government will have to leave the Parliament Building, and to this end, rather than pursuing grandiose ideas, the Government is seeking the most reasonable and most obvious solution through the renovation of old buildings and the preservation of heritage.

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New curriculum may be introduced as of 2018, burdens on students may decrease

State Secretary for Education László Palkovics submitted to the Government proposals for the adoption of a new national curriculum, the reduction of the burdens of students and the reform of the teacher further training system, Mr Lázár said.

The State Secretary initiated that, based on the recommendations of the public education roundtable, there should be a new national curriculum as of 2018 if possible, and the burdens on students should decrease already as of the next school year, the Minister informed the press. He added that a national minimum must be defined which students must reach as an essential level.

Regarding the reform of the further training of teachers, Mr Palkovics proposed that universities should provide the required training, and the costs should be covered by the State in their entirety.

The State Secretary for Education also requested the Government to review the mixed – state and municipality – operating model because it has failed, the head of the Prime Minister’s Office said, indicating that at present more than 500 schools are operated by municipalities.

“We must create absolutely clear-cut conditions (…) on the basis of negotiations”, he said, and took the view that a single system must be set up in which the State provides the funds and operates schools.

Regarding all-day school, he said that it is not something that everyone needs, but it is important for children struggling with difficulties. At the same time, he made clear that there is no need or scope for the liberalisation of the textbook market.

Mr Lázár repeated that the Government is planning to decentralise the operation of institutions. As a result, there would be school districts between the districts and the central institution operator, the responsibilities would be re-divided, and school principals would be reinforced.

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The Minister was asked about an incident: several journalists were banned from the Parliament Building because they were filming in unauthorised locations. He replied: every house has its own operating regulations, and so does Parliament. These are set by the house leadership as at any time, he said, adding: a good parliamentary reporter must also seek to cooperate.

In answer to a question regarding the programme fee which may be collected for the programmes of RTL Klub and TV2, he said: the Government has introduced this fee now because “the conditions regarding solvent demand are in place now”. 

The news portal Index formerly reported that the Counter Terrorism Service brought the Prime Minister’s son back from Africa. In answer to this question, Mr Lázár pointed out: the reporter of Index was lying. Not a word of this news is true, and they have every right to expect the news portal to take the necessary measures. “I am convinced that either it is a very gross mistake on the part of a journalist, or an intentional lie”, he said, highlighting that not a single state organisation took part in any kind of repatriation operation.

Hungary’s proposal is Schengen 2.0 instead of Dublin reform

Regarding illegal migration, Mr Lázár confirmed that the Hungarian Government does not agree with the European Commission’s initiative concerning the reform of the Dublin asylum system.

At the same time, the Cabinet does not merely want to criticise, but seeks to make constructive proposals, and this is why they are submitting the ten-point action plan which is designed to resolve the situation to the Brussels body and seek to convince the Member States that Schengen 2.0 is the right way forward, he said. The Minister described the protection of the external borders as the most important task.

NBH contributed to rescuing Hungary

The politician was asked a number of questions about the foundations of the national bank. He said: they were duly registered by the courts and operate lawfully. He told the opposition: if they „want to beat” Fidesz, they should not do so through the National Bank of Hungary (NBH) because it endangers the forint.

In his assessment, the NBH contributed to the rescuing of Hungary, and its interest policy substantially helped to increase stability. In his view, „the central bank is currently being weakened with this scandal”.

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In answer to a question, Mr Lázár also said that the development of a career model at the ambulance service is on the agenda.

At the same time, at this point in time, they are not planning a career model in health care, but a pay rise, he added.

In the Minister’s view, it is absolutely essential to build a super-hospital in Budapest, while the other institutions involved in the provision of care must be developed.

(Cabinet Office of the Prime Minister/MTI)