Hungary must keep its budget deficit down to make the country less vulnerable to movements on global debt markets, Prime Minister Gordon Bajnai said at a meeting of the Economic and Social Council in Parliament.
Developed economies with big deficits now are expected to soak up liquidity after the crisis has passed, leaving less for developed, smaller economies, he noted.
Revenue of the general government is expected to bottom out only next year, which justifies the government's program to cut spending by more than HUF 1,000 billion in the two years combined, Bajnai said. Hungary targets a 3.8%-of-GDP general government deficit in 2010, well under the 7.3% average for EU member states. (MTI – Econews)