US EditionHungary's Orban denies need for spending cuts after April election
Orban pledges to maintain pre-election spending despite economists urging fiscal tightening and Fitch Ratings' downgrade to negative outlook on Hungary’s debt.
- On Jan 31, Viktor Orban denied he would impose austerity and said Fidesz will keep its flagship spending policies, including a 3% subsidised mortgage rate and income-tax exemption for mothers of two.
- Late last year, the government raised its budget deficit targets to 5% for 2025 and the 2026 election year to enable pre-election spending, amid electoral pressure on Orban.
- Among measures, Fidesz promised a 50 billion forint heating measure and a 3% subsidised mortgage rate, while analysts lowered 2026 growth outlook.
- At a campaign rally, Orban rebutted critics, citing recent data showing Hungary's economy in near-stagnation and saying deficits should be lowered 'calmly, slowly and gradually'.
- Following weak data and analysts trimming 2026 forecasts, those warnings come amid the April 12 vote, with economists saying the winner will likely tighten purse strings.
15 Articles
15 Articles
Hungary will vote in April. In the past, the opposition has always been optimistic, and in the end Viktor Orbán won high. This time it looks quite different. There are several reasons for this, but above all, the opposition finally has a young charismatic challenger.
Hungary's Orban denies need for spending cuts after April election
Hungarian Prime Minister Viktor Orban denied on Saturday that he will have to impose austerity measures to rein in the budget deficit if he wins an election in April, and said his right-wing Fidesz party would keep its flagship spending policies in place.
The Prime Minister stated firmly on Saturday: there is no need for austerity with the current 5 percent budget deficit, but rather an end to the war is necessary for the economy to develop again.
Hungary's prime minister is banking on generous subsidies and tax breaks as the economy stagnates and the country's credit rating falls. But analysts warn that regardless of the outcome of the April election, the next government will have to tighten its belts drastically.
Hungarian Prime Minister Viktor Orbán rejected Saturday's idea that he should introduce austerity measures to reduce budgetary deficit, if...
Hungarian Prime Minister Viktor Orban denied Saturday that it would need to impose austerity measures to reduce budgetary deficit if he won the April elections and said his right party, Fidesz, will maintain its spending policies.
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