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Gov't 2010 budget draft calculates with HUF 400 billion less revenue

The government's 2010 budget calculates with HUF 400 billion less revenue than in 2009, which will require about HUF 200 billion in central budget cuts, with the rest of savings coming from restructuring of local councils and Hungary's public transportation system, Finance Minister Peter Oszkó said on Wednesday.

Local councils will have a much greater freedom to manage their own activities, and the number of tasks for which they are responsible has been reduced, Oszkó said.

The budget should contain at least HUF 50 billion-HUF 60 billion of general reserves, HUF 30 billion-HUF 50 billion in reserves related to interest rate risks and stability reserves of HUF 60 billion-HUF 80 billion, Oszkó said.

Next year's budget will prepare Hungary to return to the path of growth, he said. They expect the sudden and sharp contraction of the economy to be followed by a rapid recovery, he added.

The cabinet is expected to approve the 2010 budget next week and submit it to Parliament on Friday. (MTI-Econews)