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Finance Minister: Looser Fiscal Policy Affords Flexibility

Finance Minister: Looser Fiscal Policy Affords Flexibility
The Orbán government’s raised budget deficit targets for the coming years, prompted by the continuously changing global environment and the drawn out recovery of capacities, afford flexibility, Finance Minister Mihály Varga said in an interview with business portal Portfolio.hu published on Monday.
Asked to explain the government’s motivation for raising its deficit targets in the coming years, Varga pointed to the global context of the pandemic.
“For one thing, the international environment is constantly changing. Nobody thought that another wave of infections would follow the second one. Because of that, the recovery of capacities will be a slower process. That was what prompted the Hungarian government to rethink possible scenarios,” Varga told the portal. ....

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Gov't Planning Large Deficit for 2022 Election Year Faces Criticism

The government submitted the 2022 budget draft on Tuesday with the plan to reduce the budget deficit to 5.9% of the GDP in the 2022 election year from the expected 7.5% in 2021. But it has come under heavy fire both from the Fiscal Council and the Central Bank of Hungary for the insufficient reduction of the budget deficit and public debt levels. The government’s 2022 draft looks like an election-year budget that aims to inject a significant amount of money into the support of key voting groups.
Both the deficit and the public debt increased sharply in 2021, which according to the government, is due to the economic impact of the coronavirus epidemic. So much so that the government had to submit an amendment to the 2021 budget in April to parliament. ....

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Home Building Permit Issues Plunge in Capital, Jump Elsewhere

Home Building Permit Issues Plunge in Capital, Jump Elsewhere
The number of home building permits issued in Budapest plunged in the first quarter while jumping in the rest of the country, the Central Statistical Office (KSH) said on Wednesday.
At the start of the year, the government slashed the VAT rate on home building to 5 percent from 27 percent.
Overall, number of home building permits issued edged down 1 percent to 6,946.
The number of home building permits issued in the capital fell by an annual 79 percent to 757 in Q1. During the same period, the number issued in county seats and cities with populations over 50,000 increased by 77 percent, to 1,721. The number issued in smaller cities grew by 82 percent, to 2,636, and the number issued in villages rose by 84 percent, to 1,832. ....

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Finance Minister: 2022 Budget Targets 5.2% Growth, 5.9% Deficit

Finance Minister: 2022 Budget Targets 5.2% Growth, 5.9% Deficit
The government targets economic growth of 5.2 percent, with a deficit target of 5.9 percent of GDP and public debt of 79.3 percent, Finance Minister Mihály Varga said, presenting the 2022 budget bill to parliament on Tuesday.
Varga said the budget was aimed at relaunching the economy, supporting families, reintroducing the 13-month pension, providing tax exemptions for earners under 25, while further reducing the tax burden on employers and supporting investments that create jobs.
Fully 7,308 billion forints (EUR 20.3bn) is penciled in to restart of the economy, amounting to the biggest economic programme in modern Hungarian history, he said. ....

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Gov't Outsources State Assets and Unis to 'Raise Competitiveness,' Opposition Believes It's Robbery

Fidesz-KDNP members of the National Assembly, with the help of three independent MPs, voted in the law that transfers various state assets to “public interest asset management foundations,” removing the state’s oversight of hundreds of billions in public funds. The government’s official reasoning is to raise competitiveness and efficiency. However, the move raises a great deal of concerns as many fear Fidesz and Orbán want to put hands on state assets and build a deep state in an aim to keep wealth and influence for a long time, in addition to extending their ideological influence.
What is this about? ....

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