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Veres warns unions against proposals endangering deficit target

Finance Minister János Veres warned unions and employers on Friday against any proposals which would raise the fiscal deficit in 2007 over the targeted 6.8% of GDP or require the state to dip into Ft 200 billion of budget reserves.

Veres said the tax laws for 2007 could no longer be changed, but an ad hoc committee will accept proposals for a tax and contribution system after next year. The system should boost competitiveness, discourage black marketeering and serve the best interests of both employers and employees, he said. Veres noted that unions and business anticipated the economy would grow at a faster clip in 2007 than the 2.2% projected in the budget. He also warned against suggestions on how to use the resulting additional tax revenue. (Mti-Eco)