Are you sure?

Parties reach consensus on budget cap

Hungary's five parliamentary parties on Sunday agreed on the most important points of a bill on establishing a budget spending ceiling, said János Kóka, head of the liberal SzDSz parliamentary group, which initiated the meeting.

The parties agreed that spending in 2010 and 2011 should be limited to the previous year's spending plus one-half of the rate of inflation and GDP growth, Kóka said. He said that the expenditure line in the 2009 budget bill met the spending cap criteria in the proposed new legislation.

The parties agreed to establish an independent budget council, whose members would be nominated by the president, the state audit office ÁSz and the governor of the Cetnral BNak (MNB), and that would issue an opinion on the budget bills. There was no agreement on a proposal by the governing socialists (MSzP) to set up a budget office.

The five parties agreed to ask the government to inform them of the details of the IMF agreement at a closed-door meeting early this week. (MTI – Econews)