Opposition says 2006 budget amendment to raise national debt

Analysis

The Hungarian government's 2006 budget amendment will bring the public deficit higher and put the country further in debt, MP for main opposition Fidesz party András Tállai told MTI on Sunday.

The government on Friday put a proposed amendment to the 2006 budget to Parliament, with a bid to raise the cash flow-based public finance deficit from 8.2% of GDP to 9.6%. The amendment would leave the accrual-based deficit unchanged at 10.1% in 2006. The amendment proposal also raises the central budget deficit target by Ft 390 billion to Ft 1,921.3 billion (€6.99 billion) and the deficit target for health and pension funds by Ft 126.4 billion to Ft 158.2 billion (€575.3 million).

The amendment will raise the public deficit considerably, to over 10%, which means that more money will have to be borrowed," Tállai said. He added that the amendment verifies earlier opposition charges that the revenue and expenditure items in the 2006 budget "were untrue and based on lies," as a result of which the Finance Minister should resign. (english.mti.hu)

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