Lower growth, weaker forint put HUF 320bn dent in 2012 budget – Matolcsy
The government is recalculating the 2012 budget assuming an exchange rate of 299 forints to the euro and GDP growth of 0.5%, which will have a combined HUF 320bn effect, National Economy Minister Gyorgy Matolcsy said at a press conference on Thursday.
The assumptions compare to a HUF/€rate of 268 and GDP growth of 1.5% in the budget bill originally submitted to Parliament by the government.
Mr Matolcsy said the government had decided on measures that would make the 2.5%-of-GDP deficit target achievable.
Prime Minister Viktor Orban said at the weekend that the 2012 budget bill would have to be recalculated because of lower growth and a weaker forint.
The government will cover the HUF 320bn by using up the HUF 200bn in "national protection" reserves, while a further HUF 120bn will come from contributions for Hungarians who remain in private pension funds, HUF 20bn will come from a higher excise tax on tobacco products and HUF 52bn will come from reserves freed up in budget chapters, Mr Matolcsy said.
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.