2023 Budget Gap Could Reach 6% of GDP - Varga

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Hungary's general government deficit may have reached 6% of GDP last year as a decline in consumption amid falling real wages weighed on tax revenue, Finance Minister Mihály Varga said in an interview with commercial broadcaster Inforadio on Thursday, according to a report by state news wire MTI.

Looking forward, Varga said the improvement in the fiscal balance would continue, but the budget couldn't be "ripped" from the economic context. The budget deficit needs to be reduced this year, but the 3% Maastricht threshold can't be achieved in 2024, only in 2025, he added.

The task for this year is to strengthen economic growth while also considering the budget balance, he said.

The Finance Ministry had projected a 5.9%-of-GDP deficit for 2023 in a forecast published late last year.

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