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Hungarian Central Bank expects budget gap to swell to 7% of GDP

Hungary's budget deficit will probably expand to 7% of gross domestic product this year, instead of the government's target of 4.7%, according to a report by the country's central bank. Hungary's government will miss its target for the budget shortfall for the fourth consecutive year, according to a presentation distributed before a speech by Central Bank President Zsigmond Járai today. The deficit will cause Hungary to fail in its plans to adopt the euro in 2010, Járai said. ``The deficit and the government debt are cancers to the economy. We need very quick reforms.'', he added. The government's 2006 budget proposal, which will be presented today and was made available for central bank officials last night, won't start ``any kind of reform,'' Járai said.