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Gov't to announce structural reforms in the spring

The government will announce structural reforms in the spring, National Economy Minister György Matolcsy said, opening the debate in parliament on the 2011 budget bill.

The government must announce necessary structural reforms early in the spring of next year, after consultations, Matolcsy said. “That is what our own conscience expects, as well as the whole world and the European Union,” he added.

The government will prepare a document in the spring which could be called the national renewal plan or the growth and stability program, Matolcsy said. The whole structural reform has to be made clear: the steps, depth, range and pace as well as the savings expected he added.

Hungary's state bureaucracy must be cut by at least a quarter, which would result in fiscal savings of HUF 600 billion-800 billion, Matolcsy said. Creating 1 million jobs will generate additional budget revenue of some HUF 1,000 billion, which “could put in order” the HUF 900 billion gap in the state pension fund, he added.

The government has repeatedly said it aims to create 1m jobs in ten years.

The conditions for long-term fiscal consolidation are GDP growth over 3% in the coming years as well as restoring balance to the pension and health funds, he said. Hungary's economy is capable of growing 4-6% in 2013 and 2014, he added. (MTI – Econews)