Parliament OKs 2017 budget, modifies budget for this year
The Hungarian Parliament today approved the budget bill for 2017 and modified the budget act for this year, according to reports. Next yearʼs budget separates EU funding for the first time. Amendments to the 2016 budget act raise both revenue and expenditures by HUF 421.7 bln, the reports said.
The 2017 budget targets revenue of HUF 17.431 trillion, expenditures of HUF 18.597 tln and a cashflow-based deficit of HUF 1.166 tln, Hungarian news agency MTI reported.
For the first time, budget revenue and expenditures are separated into three categories: operations of the state, investments funded by the state and investments funded by the European Union. The budget targets both revenue and expenditures related to operations of HUF 14.721 tln bln, according to MTI.
Expenditures on investments funded by the state in 2017 are targeted at HUF 1.636 tln and are set to run a HUF 472.4 bln deficit, MTI said, adding that expenditures on investments funded by the EU are targeted at HUF 2.239 tln and are set to have a HUF 694 bln deficit.
Amendments lawmakers approved in Parliament today to the 2016 budget act raise both revenue and expenditures by HUF 421.7 bln, according to reports. The amendments also raise the revenue target from HUF 15.800 tln to HUF 16.222 tln. Lawmakers also increased the expenditure target for this year from HUF 16.562 tln to HUF 16.983 tln. The cashflow-based deficit target is unchanged at HUF 761.6 bln.
According to the justification attached to the amendments by National Economy Minister Mihály Varga, the higher expenditures will be covered by “the transfer of the base effect of higher tax revenue from processes in 2015” as well as “favorable trends in 2016”, MTI reported. The justification attributed the higher revenue from taxes and contributions to economic growth, higher wage payouts and improved taxpayer morale resulting from a government crackdown on the shadow economy, MTI added.
The amendments raise targeted revenue from corporate tax by HUF 289.4 bln to HUF 689.9 bln, according to MTI. The target for revenue from VAT was raised by HUF 37.0 bln to HUF 3.38 tln and the target for revenue from excise tax by HUF 32.3 bln to HUF 984.5 bln. The target for revenue from personal income tax increased by about HUF 36 bln to HUF 1.6945 tln, MTI added.
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