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Economy Minister proposes freezing HUF 12.7bn to keep 2011 budget goal

Hungarian National Economy Minister Matolcsy has submitted a proposal to parliament to freeze HUF 12.7bn of the constitutional and media reserves in this year’s budget, the proposed resolution on the parliamentary website shows.

The freeze is needed in order to meet this year’s budget deficit target of slightly below 3% of GDP.

The government had frozen HUF 40bn earlier but freezing the above reserves requires approval by parliament, the explanation to the proposed resolution says.

The above 2011 deficit target is calculated without one-off items such as the transfer of the private pension fund assets after former members returning to the state pension system.