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Hungary is on track to meet budget deficit goals, Premier says

Hungary is on track to meet the government's budget deficit target this year and doesn't need to take more measures to reduce the shortfall, Prime Minister Ferenc Gyurcsány said today.

„We are nearing balance at the planned rate,” Gyurcsány said in a speech in parliament to detail his policy agenda for this year. „There is no need for new measures strictly meant from a budget perspective that would be different from the course we already set for ourselves. Gyurcsány is struggling to reduce the budget deficit after running up the European Union's widest shortfall last year.

He has raised taxes ad cut subsidies, aiming to cut the gap to near the limit for euro adoption by 2009. EU Monetary Affairs Commissioner Joaquin Almunia today said the bloc will keep pressuring the government to carry out its budget plan, as reaching the targets hinges on the program's implementation. Gyurcsány also pledged to spend at least half of the excess revenue from GDP growth on investments from this year. The government plans to put more money towards education and research projects, he said. (Bloomberg)