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Kopint-Tárki head puts 2010 deficit at 4%-4.5% of GDP

Hungary's general government deficit will reach no more than 4%-4.5% of GDP for 2010, Éva Palócz, the head of economic think tank Kopint-Tárki, said on a program broadcast by Duna Television late Wednesday.

The Bajnai government targets a 3.8%-of-GDP deficit for 2010.

Palócz said her projection is based on maintaining the responsible fiscal stand of the last year and with assuming no change in other conditions.

The actual deficit could be somewhat higher as "the IMF and European Union will probably give a nod of approval to a slightly higher deficit, and investors will accept this," Palócz said.

György Matolcsy, an important economic advisor for Fidesz, which won a majority in the first round of general elections on Sunday, said earlier that certain budget items could cause the 2010 deficit to rise over 7% of GDP, but this cannot be allowed because of the country's dependency on external financing. The deficit ought to be kept in the 4.5%-6.5% range, he said. (MTI-ECONEWS)