A bill submitted to Parliament on Wednesday by National Economy Minister György Matolcsy would withdraw HUF 182.1 billion in frozen budget allocations because of the possibility of lower revenue and higher expenditures, the text of the bill published on the website of Parliament shows.
The frozen targeted spending will be “permanently reduced”, according to the bill.
The frozen spending is part of a HUF 250 billion stability reserve established by the government in the 2011 budget in February. Matolcsy recommended in April that the stability reserve be made permanent because of global risk.
The bill shows revenue from corporate tax is expected to be HUF 84 billion under the target this year. It shows shortfalls of HUF 69 billion from VAT, HUF 16 billion from the Simplified Business Tax and HUF 6.6 billion from duties. The bill would reduce budget support for the Research and Technology Innovation Fund by HUF 9 billion and require financial market regulator PSZAF to pay a further HUF 2.5 billion into the budget.
The bill would not affect the budget deficit, which remains targeted at HUF 685.7 billion.
Matolcsy clarified the text of the bill on Thursday such that the reason for the withdrawal is a “possible”, rather than an “expected”, overshoot of expenditures and undershoot of revenue.
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