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Speaking to Kossuth Radio a day after outlining the draft budget’s measures in Parliament, Magyar said economic growth was expected to accelerate from 1.7%-1.8% in 2026.
The government’s medium-term plan, extending to 2030, aims to achieve growth above 3%, he added.
According to Finance Ministry projections cited by Magyar, the general government deficit would narrow to 4% of GDP in 2028, 3.4% in 2029 and 2.8% in 2030.
The 3% inflation assumption for 2027 matches the National Bank of Hungary’s medium-term target. Magyar described that rate as “totally healthy” for the economy.
Magyar said the budget would pave the way for Hungary’s “reconstruction,” highlighting the “21st century Hungarian New Deal” announced Monday. The initiative would draw on HUF 928 bln in EU funding for corporate and infrastructure investment.
He criticized the former Fidesz-KDNP government for failing to make full use of EU funding while increasing Hungary’s debt, contrasting its record with Poland’s use of EU resources.
“Today, one can’t recognise Poland compared to ten years ago,” he said.
Hungary could achieve a similar transformation within five to seven years “if EU funding is used efficiently, for good investments, for targeted support and without corruption,” Magyar added.
Magyar acknowledged that Hungarian government securities yields had declined markedly following the Tisza government’s election and the announcement of cost-saving measures. However, Hungary’s risk premium remained high compared with more stable countries, he said.
Stable growth, a narrowing deficit and declining public debt could generate savings on debt servicing of HUF 100 bln initially and as much as HUF 1 tln later, he said. Those resources could support health care, education, wage increases and tax cuts.
Public debt is projected to edge down to 77.2% of GDP at the end of 2027 from 77.5% at the end of 2026, Magyar said.
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