Govt may increase budget reserves to counter slow growth, says Varga

Banking

Hungary will lay aside more funds at ministries in a bid to offset the negative effects of slowing economic growth, while additional 'minor' economic measures are also in the pipeline, said Mihály Varga, chief of staff for the prime minister, in a television interview on Wednesday 

Varga said the government may need to take action to increase the HUF 250 billion already frozen in budget reserves.

The government may change taxes to close budget gaps and raise the excise tax on cigarettes, Varga said.

The government originally projected a GDP growth of around 3% for 2011, which was revised down to 2% last week.

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