Are you sure?

Hungary to become "model country" for reducing debt

Hungary will be a "model country" in terms of reducing debt, the finance minister said at a conference in Siófok at the weekend.

Péter Oszkó emphasized that the budget deficit and the government debt must be set on a decreasing path by cutting expenditures, as a result of which Hungary could become a "model country" in terms of lowering debt.

One way to keep the budget deficit at the targeted level could be to increase taxes, but "we do not want to take that path", the finance minister said. He emphasized that the government wants to improve the economy's growth capacity, which can only be done by fully offsetting the lost revenues by cutting expenditures and lowering the budget deficit.

Oszkó said the level of employment must also be raised, from the current 57% to 67%, in order to improve the country's competitiveness.

The Europeans Commission expects Hungary's general government deficit to be 4.1% of GDP this year, 4.2 % next year and 3.9% in 2011, compared to 6.9%, 7.5% and 6.9% respectively forecast for the entire EU on average. (MTI-ECONEWS)