Govt could take smaller steps to narrow budget gap if growth slows

History

Hungary's government would have to introduce 8-10 smaller measures to keep this year's fiscal deficit target if the economy grows at a slower pace than expected, state secretary of the Prime Minister's Office Mihaly Varga said in an interview with commercial broadcaster Hir TV on Sunday.

Early estimates put Hungary's GDP growth at 2% or lower this year, which would add HUF 80 billion-100 billion to the general government deficit, Varga said. To fill this "hole", the government would not take a single big step, but 8-10 smaller measures that would each narrow the fiscal gap by HUF 10 billion-20 billion, he added.

Assets transferred to the state from private pension funds earlier this year do not serve the goal of achieving the deficit target, Varga said, answering a question.

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