The must-have newsletter about Hungary

FISCAL COUNCIL SEES BUDGET AMENDMENT BILL 'CREDIBLE'

 

The budget amendment bill submitted to parliament is credible, and the Fiscal Council has no “fundamental objections”, but it sees several risks concerning the fulfilment of its targets, the body said. Hungary’s ESA deficit ratio is set to grow to 3.9% from 3.5%, while the cash-flow deficit will expand from 3.3% to 4.5%, the Fiscal Council said on its website, noting that a 3% deficit would be “desirable”. The amended 2023 budget bill targets growth of 1.5% as against 4.1% initially forecast, it noted, adding that the growth largely depends on foreign market trends. The government’s plan to use revenue from any extra growth above 1.5% to reduce the deficit is a welcome development, the council said. It also noted that the public debt is projected to drop to 69.7% by the end of 2023 from 73.5% at the end of last year.