Fiscal Council Head Points to Need for 'Very Disciplined' Budget Policy


Image by

The head of the Fiscal Council pointed to the need for maintaining a "very disciplined" fiscal policy, along with continuous monitoring, to meet this year's 4.5%-of-GDP deficit target in a presentation to the Hungarian Economic Association on Tuesday, according to a report by state news wire MTI.

Gábor Horváth noted that Hungary had benefitted from extraordinarily low interest rates in the 2010s, supporting normalisation of interest rate expenditures and contributing to low fiscal deficits and a reduction in state debt. Last year, because of higher interest rates to bring down runaway inflation, the cost of servicing Hungary's debt, relative to GDP, was the highest in the European Union, he said. The same can be expected this year, too, he added.

He acknowledged that Hungary had cut its state debt level by 0.6 pp last year, while state debt levels in ten EU member states had climbed, but pointed out that the level in Hungary was still higher than in all of its competitors in the region.

Citing the Fiscal Council's three-year outlook, Horváth said balance needed to be restored and broad competitiveness reforms carried out for Hungary's GDP growth to stay over 4%. He added that room for increasing the volume of factors that had driven Hungary's economic growth earlier was limited and the focus should be on improving quality in the process of convergence.

Hungary Crude Supply Secured With 'Temporary Solutions' Energy Trade

Hungary Crude Supply Secured With 'Temporary Solutions'

Hungary to Host Next EPC Summit Int’l Relations

Hungary to Host Next EPC Summit

New Tenants at Academia Offices Office Market

New Tenants at Academia Offices

Visitor Numbers, Guest Nights Climb in H1 Tourism

Visitor Numbers, Guest Nights Climb in H1


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.