Hungary cuts 2006 spending by Ft 100 bln
Wednesday, October 19, 2005, 11:40
Hungary's government cut Ft 100 billion of spending from the 2006 budget to trim its shortfall and get closer to euro adoption in 2010, daily Népszabadság reported. The sum was originally budgeted as a reserve fund, which the government set aside for pre-election handouts, according to the newspaper. Prime Minister Ferenc Gyurcsány decided to delete it from next year's budget after the governing Socialists and their Free Democrat allies agreed to stick with the goal of adopting the euro in 2010, Népszabadság said. The European Commission will reprimand Hungary tomorrow for failing its budget shortfall below European Union limits, according to a draft ruling. The commission said the deficit could exceed 8% of gross domestic product in 2006, close to three times the 3% required to adopt the euro.