Hungarian Prime Minister Viktor Orban issued a decree completely overhauling the 2023 budget, significantly increasing the national debt and approving the parliament. This writes Bloomberg.
The budget deficit will increase from 2.4 trillion to 3.4 trillion guilders ($9 billion), representing about 3.9% of GDP instead of the 3.5% announced in June. The Hungarian government also expects turnover and spending in the country to increase, partly due to high inflation. Inflation in Hungary is the highest of all the countries of the European Union, in December inflation could even rise to 27%.
The EU previously denied Hungary some €28 billion in funds over suspicions of corruption and erosion of the rule of law. A financial setback, especially in light of the tax burden resulting from the explosion in energy import costs and government subsidies in the aftermath of the war in Ukraine.
Fill in the holes
For this reason, Orban’s government has been mainly busy filling budget gaps with tax hikes on energy and finance, among other things. Taxes have also increased for pharmaceutical manufacturers.
The Hungarian government is also considering selling 4 billion of government bonds on international debt markets in the first six months of 2023. Those proceeds will be used to cover subsidies, which will cost more than four times as much.
At least past the parliament
Although Hungary’s parliament initially approved consideration of the new financial package, the government will still present the plan for approval next month. Minister Gergely Gulyas told the state channel Mti. This will only happen after the new package goes into effect.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
