Hungary’s government has decided a total of HUF 214 billion (€707.91 million) in budget cuts over the past few weeks, Ministry of Finance State Secretary László Keller told MTI on Monday.
Keller said that the government is aiming to bring its 2009 budget deficit under the targeted 2.9%, adding that the cabinet may utilize its authority to make more budget cuts this year and initiate procedures to amend legislation necessary to further reduce expenditures.
The state secretary said that a decrease in land-based supplementary agricultural subsidies had accounted for HUF 37 billion of the HUF 214 billion in budget cuts, while the government expects reductions in gas and district-heating subsidies to produce another HUF 20 billion in budgetary savings, noting that the latter decrease will not impose greater burdens on society as a result of lower gas prices.
Keller said that HUF 30 billion in cuts will be made to government healthcare subsidies--HUF 15 billion from drug subsidies and HUF 15 billion from institutional finance as a result of measures aimed increasing the self-governing operations.
The state secretary said that HUF 20 billion will be saved from freezing revenue stemming from the sale of carbon credits and a further HUF 24 billion from the effect of smaller interest burdens on Hungary’s macroeconomic path. (MTI-Econews)