PM announces 8% fiscal deficit projection
Prime Minister Ferenc Gyurcsány said Hungary's public finance deficit will amount to 8% of GDP this year and pressed for reforms in his opening speech in Parliament on Thursday, when he submitted the new government program for a two-day debate.
Gyurcsány said the budget had to be adjusted this year to create a fiscal balance. He added that state reform is needed in order to establish a service-provider state that is also in charge of developments and investments. This requires spending cuts, Gyurcsány said. The government's new forecast is way over its earlier firmly supported deficit target of 4.7% of GDP, adjusted for the effects of pension reform.
Economists and international economic forums have been indicating for some time that the fiscal deficit would overshoot to 8.5%, or, excluding the pension reform, to 10% of GDP in 2006, using European Union methodology.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.