Parliament approves 2020 budget; slashes MTA funding
Lawmakers approved the 2020 budget with a vote of 127 for, 58 against, and no abstentions on Friday. The budget targets revenue of HUF 21.426 trillion, and expenditures of HUF 21.793 tln, producing a deficit of HUF 367.0 billion, less than half this yearʼs HUF 998.4 bln target.
The budget targets a deficit of 1.0% of GDP, calculated according to the European Unionʼs accrual-based accounting methodology, noted state news agency MTI. It is under the target of 1.5% of GDP in the updated Convergence Program submitted to Brussels in April.
Hungaryʼs year-end state debt level, relative to GDP, is set to fall from 68.6% targeted for 2019, to 65.5% for 2020.
The budget sets aside HUF 488 bln in reserves, including HUF 378 bln in the National Protection Fund, and HUF 110 bln for "extraordinary government measures," more than double the total of HUF 225 bln of reserves in the 2019 budget.
The cost of debt maintenance targeted in the budget is HUF 1.078 tln.
The budget assumes GDP growth of "around 4%" and consumer price inflation of 2.8%.
Controversially, the budget cuts the expenditures of the Hungarian Academy of Sciences (MTA) by 69% from this year to HUF 17.2 bln. At the same time, the 2020 budget contains a new chapter for the Eötvös Loránd Research Network (ELKH), a body the government recently established to take over the MTAʼs network of research institutions. Expenditures of the ELKH are targeted at HUF 48.2 bln.
The bill on the future operation of the MTA research network was passed by Parliament on July 2, and rubber-stamped on Friday by President of the Republic János Áder over constitutional objections.
Rail Cargo Group Leases Logisztár Terminal to S. Korean Logi...
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
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.
