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Hungary state debt to fall to 78% of GDP in 2011

Hungary's state debt as a proportion of GDP will fall to 78% in 2011 from 79-80% in 2010, an analysis by the National Economy Ministry published shows.

The analysis, entitled “Growth and Stability: A change of trend in the economy and fiscal policy”, puts GDP growth at 3% in 2011, in line with the government's projection when drawing up the 2011 budget draft.

The ministry sees household consumption increasing 3.9% in 2011 after falling 3.1% in 2010. It projects gross capital accumulation to expand 6.9% in 2011.

Tax centralization is set to fall to 36% in 2011 from 39.5% in 2009, according to the analysis.

Lasting fiscal consolidation will require the creating of 1m jobs in ten years, raising the investment rate close to 25%, reducing state bureaucracy by at least 25%, keeping GDP growth over 3% and balancing the social security funds, the ministry said. (MTI – Econews)