Fidesz would reallocate Ft 200 bln in 2007 budget

Parliament

Opposition party Fidesz suggests a reallocation of Ft 200 billion (€778.25 million) in the budget for 2007, Fidesz vice-president and former finance minister Mihály Varga announced on Thursday.

Varga said that the proposed modifications would not increase the deficit, adding that the opposition agrees with the government that the size of the budget shortfall must be reduced.
The Fidesz-sponsored reallocations would provide more support to local councils, health care, education and enterprises as well as spending more on social contributions. The largest portion of the reallocated funds, Ft 62.3 billion, would go to local councils, while health care would receive Ft 57.1 billion. The Fidesz proposal would spend Ft 40 billion more on improving employment and competitiveness, Ft 16.9 billion on education, Ft 17.9 billion on support for the city of Budapest and Ft 5.7 billion on social contributions.

 

Fidesz proposed more than 100 measures, which would reduce expenses related to interest payments, the cost of a proposed government administrative district, Ft 3 billion in government communications expenditures and other spending deemed unnecessary, such as costs of running the State Reform Committee and some EU-communication related expenses.
Varga said Hungary will spend an extremely high Ft 1,100 billion on interest payments in 2007, adding that Fidesz would expect Hungary's risk premium to decline significantly if the country were to change its present economic policy and prime minister. Fidesz deems the government's lack of credibility and idleness to have generated an unreasonably high risk premium, Varga said.

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