Hungary to cut the deficit below 5% of GDP in Magyar's first budget plan
- On Monday, Oct 19, Prime Minister Peter Magyar unveiled a 2027 draft budget targeting a 4.9% deficit, a key test for Hungary's euro-adoption ambitions.
- This reduction marks a sharp improvement from this year's 7.5% shortfall, aiming to meet the European target ceiling while honoring election pledges that secured Magyar's landslide win over Viktor Orban.
- New Spending will exceed 2 trillion forints, funded by 1.5 trillion in cuts and revenue measures including a wealth tax, higher corporate taxes, and increased energy levies.
- The government plans 677 billion forints for wage hikes and nearly 450 billion for Pensioners, while income tax cuts for more than 2 million taxpayers cost 250 billion forints, as the forint reached a four-week high on Monday.
- Analysts now project Hungary could join the European currency in 2032 or 2033, as the government's fiscal discipline continues to drive bond yields lower across Europe.
27 Articles
27 Articles
Hungarian Prime Minister Péter Magyar presented the first budget of the Tisza government, promising to reduce income taxes for two million people, doubling family allowances and a significant increase in health spending in 2027. The proposed measures also include raising minimum pensions, wage increases in the public sector and new child protection funds, reports Daily News Hungary.
Péter Magyar presented the 2027 budget. According to Dániel Deák, wage increases in several sectors may fall short of previous promises.
As of 1 January 2027, the Hungarian Prime Minister, Peter Madyar, announced that the Government would reduce the income tax for the poorest citizens to 9 per cent and increase the minimum pension fourfold. As of 1 January 2027, the income tax for citizens with a monthly income of less than HUF 680,000 (1,870) would be reduced. At present, a flat tax scale of 15 per cent is in force in the country, transfers TASS. "At the beginning of 2027, we wi…
“Well, we got such a Fidel Castro. Ladies and gentlemen, we heard the Fidel Castro of the Carpathians,” Bence Rétvári began his speech, referring to Péter Magyar. He especially congratulated the “conciseness” of the 126-minute speech. According to the KDNP faction leader, the budget presented by Magyar was “anti-middle class.” Rétvári said that it was important for Magyar’s party to eliminate the veto power of the Budget Council from the system.…
Hungary to Cut 2027 Budget Deficit to 4.9% of GDP in Euro Push
Hungary will cut the budget deficit to 4.9% of economic output next year, Prime Minister Peter Magyar said on Monday, signaling the government is ready for an ambitious reduction in spending on the way to potential euro membership.
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