The fiscal costs of family support measures unveiled by the government in February are expected to reach 0.3% of GDP this year and 1.1% of GDP next year, a government official said.
The measures will not impact the general government deficit target in either year, finance ministry state secretary Gábor Gion said at a conference organised by the Hungarian Economics Society.
Gion said that the measures could lift GDP growth by 0.1 to 0.2% this year and by 0.3 to 0.5% next year. A month earlier, the National Bank of Hungary estimated the fiscal cost of the family support measures to reach 0.1% of GDP this year and climb to around 0.4% of GDP in 2020 and 2021.
The additional family support measures, which include interest-free credit for prenatal support, subsidies for new cars and an increase in the number of places in creches, among others, were announced by Prime Minister Viktor Orbán in February as part of the government’s efforts to deal with falling population rates.