Are you sure?

Gov't could cut HUF 100 billion or more from labor market, drug funds

Government reforms to start next year already could cut HUF 100 billion-120 billion from the HUF 360 billion labour market fund and a further HUF 100 billion from the HUF 340 billion drug fund, National Economy Minister György Matolcsy said in an interview with business weekly HVG published on Thursday.

Matolcsy reiterated that the reforms, to be completed by the end of 2012, would result in HUF 600 - 800 billion in budget savings.

Matolcsy said a review had to be made of Hungarians on disability pension. Disability pensions account for 12% of all pension in Hungary, twice the average rate for OECD countries, he noted.

Matolcsy said that the HUF 150 billion in subsidies state-owned railway company MÁV gets each year was unsustainably high, but the company would get just as much in 2011 too.

Reforms that could be carried out in 2012 could save HUF 50 billion in budget expenditures on public transportation, he said. (MTI-Econews)