The must-have newsletter about Hungary



An amendment to this year’s budget and planning for the 2025 budget are in the pipeline, foreseeing a lower deficit, declining public debt and stronger economic growth, Mihály Varga, the finance minister, said after meeting the head of the Fiscal Council. Given the effects of external factors on the Hungarian economy and public finances, this year’s deficit target has been raised to 4.5%, according to a ministry statement. The target will be steadily reduced to below 3% in subsequent years, it added. The two officials agreed on the vital importance of improving balance indicators, and Varga said government was committed to reducing the budget deficit and the public debt with a view to ensuring sustainable growth. The budget shortfall will be reduced from 4.5% this year to 3.7% in 2025 before a further reduction to 2.9% in 2026, the statement said.