Fiscal cost of family support measures to reach 0.3% of GDP

Parliament

The fiscal costs of family support measures unveiled by the government in February are expected to reach the equivalent of 0.3% of GDP this year, and 1.1% of GDP next year, but will not impact the general government deficit target in either year, a senior official of the Ministry of Finance said on Thursday.

Speaking at a conference organized by the Hungarian Economic Association, state secretary Gábor Gion said that the measures could lift GDP growth by 0.1-0.2% this year, and by 0.3-0.5% next year, state news wire MTI reported.

A month earlier, the National Bank of Hungary (MNB) estimated the fiscal cost of the family support measures would reach the equivalent of 0.1% of GDP this year, climbing to around 0.4% of GDP in 2020 and 2021.

The additional family support measures, which include interest-free credit for prenatal support, subsidies for new cars, and an increase in the number of places in creches, among others, were announced by Prime Minister Viktor Orbán in February as part of the governmentʼs efforts to deal with depopulation.

ADVERTISEMENT

Growth plans and inflation uncertainty in European companies Analysis

Growth plans and inflation uncertainty in European companies

Plan for local elections to coincide with EP election Elections

Plan for local elections to coincide with EP election

MNB and Budapest Institute of Banking executive director Ger... Podcasts

MNB and Budapest Institute of Banking executive director Ger...

FINA head thanks Hungary for hosting 2022 worlds City

FINA head thanks Hungary for hosting 2022 worlds

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.