Are you sure?

Parliament taps into stability reserves

Parliament on Monday approved changes to the 2011 budget act that withdraw HUF 182.1 billion in frozen budget allocations because of the possibility of lower revenue and higher expenditures.

The change will not affect the budget deficit, which remains targeted at HUF 1,184.2 billion.

The frozen spending is part of a HUF 250 billion stability reserve established by the government in the 2011 budget in February. Matolcsy recommended in April that the stability reserve be made permanent because of global risk.

The legislation shows revenue from corporate tax is expected to be HUF 84 billion under the target this year.

It shows shortfalls of HUF 69 billion from VAT, HUF 16 billion from the Simplified Business Tax and HUF 6.6 billion from duties.

The law will reduce budget support for the Research and Technology Innovation Fund by HUF 9 billion and require financial market regulator PSzÁF to pay a further HUF 2.5 billion into the budget.