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State Audit Office says fiscal reserves positive, but warns of risks in 2012 budget bill

Hungary's State Audit Office (ÁSz) on Friday called a rise in reserves in next year's budget a positive development, but said a number of risks are still present in the proposed legislation.

ÁSz chairman László Domokos said the more than HUF 400bn in reserves in the budget bill was positive, considering the uncertainties and risks presented by processes in the global economy.

But he noted more than HUF 8,000bn in open items, and the fact the budget bill does not calculate with about HUF 100bn in losses at the National Bank of Hungary that must be covered.

ÁSz may only issue opinions about the budget bill, Domokos said.

In the opinion published on the website of parliament, ÁSz said it could not form an opinion on the budget bill as a whole because of a lack of documentation and calculations supporting revenue targets. It was unable to assess the feasibility of 27% of tax revenue, but said 63.3% of the target was achievable based on available information. It said high risk surrounds 6.8% of the revenue target and medium risk 2.9%.