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Independent institutions can guarantee success of fiscal policy, says Simor

Institutions that are independent of politics should be mandated to enforce budget rules, governor of the National Bank of Hungary (MNB) András Simor said at a conference organized by in Budapest on Thursday.

Governments are apt to design economic growth scenarios that are unrealistic according to independent economists, therefore independent budget institutions are needed, to control both the headline and the structural deficit of the central budget, Simor said.

Growth forecasting, which helps the good foundation of budgetary planning, should also be the task of external institutions, the MNB head said.