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VARGA: 2020 BUDGET HELPS WAGE HIKES

Next year's budget, which parliament accepted on Friday, facilitates wage and investment growth and reduces taxes and the state deficit, Finance Minister Mihály Varga told public Kossuth radio on Sunday.
 

The government’s economy protection action plan opens new possibilities for entrepreneurs by reducing tax burdens, Varga said in an interview to Kossuth radio’s Vasárnapi Újság. The aim is to achieve a growing budget surplus, Varga noted. State debt is expected to fall to 67% of GDP next year, from 83% in 2010, he said. State deficit is expected around 1% of GDP in the same period, he said. Hungary’s soaring 5.3% growth in the first quarter of 2019 has convinced the European Commission, he said: on Wednesday, the body amended its forecast of Hungary’s growth in 2019 to 4.4%.
Several sectors will be faring better under the new budget, Varga said. The 2020 budget will see a VAT cut on commercial accommodations, from 18% to 5%. The government has allocated 2,228 billion forints (EUR 683.5m) to family support and will exempt mothers with four or more children from paying personal income tax. The money allocated for home subsidies will reach 300 billion in 2020, double the 2010 amount, he said. Healthcare and education funding will reach 2,000 billion forints each, Varga said.