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Govʼt submits 2021 budget bill to Parliament

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Minister of Finance Mihály Varga submitted the 2021 budget bill to Parliament today, according to a report by state news wire MTI.

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Varga ceremoniously presented the budget, in paper and digital form, to House Speaker László Kövér in Parliament.

The minister said one of the budgetʼs aims is to help create jobs to make up for the ones lost because of the coronavirus pandemic. The government estimates GDP could grow by 4.8% next year.

The bill targets expenditures of nearly HUF 23.374 trillion and revenue of HUF 21.882 tln, resulting in a deficit of more than HUF 1.491 tln.

It targets a 2.9%-of-GDP deficit, calculated according to the European Unionʼs accrual-based accounting rules.

The bill targets a decline in state debt as a percentage of GDP to 69.3% at year-end from an expected 72.6% at the end of 2020.

It assumes 3% annual average inflation, level with the National Bank of Hungaryʼs mid-term "price stability" target.

The bill sets asides reserves equivalent to more than 0.5% of GDP.

The budget bill contains an independent chapter for a "Health and Pandemic Defense Fund" with expenditures of HUF 2.935 tln. It also contains an independent chapter for an "Economic Defense Fund" with expenditures of HUF 2.555 tln.

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