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Previous gov't blamed for overestimated revenues

An economic fact-finding committee led by state secretary Mihály Varga has revealed 63 items burdening this year's or next year's budget which the previous government did not reveal to the new cabinet, Varga said.

Varga also said the most important finding of his committee is that this year's 3.8% fiscal deficit target is achievable. Meeting the target required, however, the new government's 29-point action plan, he said.

The items that were not known when the new government took over amounted to 1.6% of the GDP. However, as a consequence of the measures taken by the government and items improving the budget balance, the 3.8% deficit target is achievable, he confirmed.

The state secretary said that the amount of the hidden items that could threaten the budgets of the coming years could make up 2.2%-2.5% of the 2010 GDP.

Listing hidden items, he said among tax revenues, 2010 corporate tax revenues were overestimated at the end of 2009 by HUF 50 billion, personal income tax revenues by HUF 40 billion and excise tax revenues by HUF 30 billion.

Varga also talked about additional financing needs of the transport companies MÁV, BKV and Malév. He said there are debts and unpaid bills that the new cabinet will have to settle in some form sooner or later. This will come to tens of billions of forints, he said.

The amount of the claims directly burdening the state in the case of the Vértes Power Plant could amount to between HUF 25-35 billion, he said.

He said no money was allocated in this year's budget for the membership fees payable to international organizations such as the UN, NATO and OECD, which add up to around HUF 6 billion.

Problematic items listed by the report included Leader tenders, the case of Hungary's Moscow trade office, Magyar Posta headquarters or luxury payments to foreign representatives of the Hungarian development bank MFB.

The report also includes conclusions and proposals relating to employment, poverty and retirement, demographic trends and the health of the population, the state secretary said. (MTI – Econews)