Fiscal Council Acknowledges New Deficit Target
Image by Shutterstock.com
Hungary's Fiscal Council, a body established to weigh in on budget matters, acknowledged the government's new 2023 deficit target in an assessment of budget trends, according to portfolio.hu.
"Raising the target is justified on the basis of both cash flow-based and accrual-based data" and "reflects economic and fiscal trends," the council said. In addition to raising the deficit target, the council said it deemed "tight control of expenditures" necessary. Hungary's year-end state debt ratio could fall despite lower-than-targeted GDP growth and the bigger budget gap, the Fiscal Council added.
Earlier on Tuesday, the Ministry of Finance said the 2023 deficit target had been raised from 3.9% to 5.2% of GDP "in view of significantly increased expenditures."
The ministry pointed to the impact of the protracted war in Ukraine and Brussels' sanctions policies on the unfavorable state of the global economy and the energy crisis but said the budget would ensure that the value of pensions was preserved and family subsidies, as well as regulated utility prices for households, were maintained, even amid the extraordinary expenditures.
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.