Gyurcsány announces comprehensive reform program
Gyurcsány said the reforms would incorporate ten basic policies and these would aim to ensure economic balance. The budget deficit will be cut to around 3% of gross domestic product by 2008 and the goal is to stabilise inflation at around the same level after a temporary rise in next year, said the prime minister. The reforms, he suggested, will realign opportunities and responsibilities in Hungarian society.
Announcements of measures to cut the gaping budget deficit, which is expected to hit 8.5% of GDP this year, had concentrated on the revenue side, and Gyurcsány has drawn criticism by foreign investors and the IMF (International Monetary Fund ) for not doing enough to cut spending. At the informal meeting in a government resort complex at lake Balaton, the details of Hungary's fiscal adjustment package were agreed on. Finance Minister János Veres told reporters that the government would cap spending the 2007 budget and three years after that to stop spending from getting out of hand, and a spending review would be required of ministries every quarter.
Gyurcsány announced the schedule of reforms: Education Minister István Hiller will announce details of education reforms next Tuesday. The required amendments will be prepared by the end of August. Decisions on a new law package and pensions will be made by the end of this year. Legal amendments will be approved in 2007 and they can come in force from 2008. The social compensation system, involving gas prices, will be announced next Wednesday. The reform and financing of public transport will be discussed on the following week. Developments under the New Hungary program which makes use of European Union funding will be discussed by the end of July and decisions will be made by the end of September in order to submit these to Brussels in early October. Tenders will be invited early next year. At the next government meeting on 31 August and beginning of September, the convergence program, the first package of the health reform, the experiences drawn from social debate about the National Development Plan, and the new regulations on wages will be discussed.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
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.