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Veres: fiscal deficit ratio 6.1% this year

Hungary's ESA95, pension reform-adjusted general government deficit will be 6.1% of the GDP this year and the ratio will be 4.7% next year according to the 2006 budget proposal, Finance Minister János Veres said on Wednesday. The planned deficit ratios are sharply up from the respective targets of 3.6% this year and 2.9% next year under Hungary's convergence program. Veres announced the figures following Wednesday's cabinet session, which finalized next year's budget bill. "We have not prepared an election budget and have committed to earlier announced plans to offset the [revenue] shortfall stemming from next year's tax changes through reducing expenditure," the minister said. Veres noted that next year's deficit would improve more compared to this year's under the new target.