ADVERTISEMENT

Hungary's Chief negotiator points out agreements with EU/IMF in debate

Banking

There are points of agreement with EU/IMF, Mihály Varga, the government's chief negotiator said answering a deputy's question on the Parliament's home page on Tuesday.

 Varga reminded that after initial talks in July with the IMF where the subjects of the actual situation of the macroeconomy, the budget deficit, sustainable debt management, employment market regulations and competitiveness were broached, the IMF left its opinion for the government, containing suggestions of measures in economy policy that required modification or further development.

"Such a suggestions were withdrawing the transaction fee on the transactions of the National Bank of Hungary, increasing the efficiency of tax collection, re-examining the single-rate taxing system, further decreasing the size of state administration, improving the targeting of social services, abolishing the banking tax, re-examining the state support of public transport and cutting the expenditures of local councils," Varga said.

The government has investigated these suggestions and on September 19 sent its reply to both the IMF and the European Commission. The reply has highlighted the points where Hungary believes there is a possibility to continue negotiations. The parties agree in the further decrease of public administration, expanding the scope of products under reverse VAT, increasing the efficiency of tax collection and abolishing the limit for payroll tax for pension.

Varga added that the government made it clear it does not support cutting pensions and employees' income. Attached to the reply were spreadsheets detailing the trajectory and balance of the Hungarian economy. International partners have also received information on measures improving balance in the past years.

ADVERTISEMENT

IMF raises Hungary 2021 GDP growth forecast to 7.6% Analysis

IMF raises Hungary 2021 GDP growth forecast to 7.6%

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

Budapest bike-sharing scheme boasts record ridership City

Budapest bike-sharing scheme boasts record ridership

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.