The budget was cleared with a vote of 133 for, 47 against and no abstentions.
The budget assumes GDP growth of 4.1% and average annual inflation of 3.6%. The deficit target relative to GDP, calculated with the European Union’s accrual-based accounting rules, is 3.7%.
Debt maintenance costs are set to fall to around HUF 3.362 tln in 2026 from HUF 3.876 tln in 2025.
Revenue from personal income tax is set to decline to HUF 4.837 tln from HUF 4.905 tln.
Revenue from VAT is expected to climb by around HUF 600 bln to HUF 8.793 tln.
Spending on state investment is set to rise to HUF 486 bln from HUF 352 bln.
The budget earmarks around HUF 192 bln for extraordinary government measures.
Year-end state debt, relative to GDP, is set to decline to 72.3% in 2026 from a targeted 73.1% at the end of 2025.
The preamble of the law identifies the matter of whether or not Hungarians’ money goes to Ukraine as the most important one in 2026.
“In the 2026 budget, we will channel Hungary’s resources to supporting Hungarian families, not to Ukraine,” the authors of the legislation said.
They highlighted the implementation of “Europe’s biggest family tax reduction programme,” pointing to a doubling of family tax allowances and the gradual rollout of personal income tax exemptions for mothers. They also pledged to maintain the regulated utilities price scheme for households and payment of the annual pensioners’ bonus and noted that the minimum wage would rise by 13%, while Hungarians in uniform would get a service bonus equivalent to half a year’s pay, adding up to HUF 450 billion.
Resources allocated for family policy measures add up to HUF 5.6 tln in the budget, including HUF 800 bln earmarked for the regulated utilities price scheme.
A PIT exemption for mothers raising two children will leave HUF 320 bln with taxpayers, while the doubling of the tax allowance for families raising children will add up to HUF 290 bln.
The budget earmarks close to HUF 5.05 trillion for economic development, including HUF 2.2 tln from EU transfers.
The preamble underscores more than HUF 4 tln in spending on education and HUF 3.919 tln in healthcare expenditures.
Defense expenditures are targeted at HUF 2.016 tln, in line with Hungary’s commitment to NATO to keep defense spending at 2% of GDP.
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