Nagy: Hungary's government will keep fiscal stability a priority in 2025 and 2026

Hungary, like many European countries, faces a demographic decline as a result of emigration, population ageing and low birth rate. In Spain, births fell by 25% in the last decade, which has led several administrations to develop birth plans that include the delivery of a sum of money for every child they choose to have. In the case of Budapest, for several years, the government of ultra-nationalist Viktor Orbán has intensified measures to encou…

Nagy: Hungary's government will keep fiscal stability a priority in 2025 and 2026

Minister Nagy highlighted the rollout of personal income tax exemptions for mothers of two and three children, the doubling of tax allowances for families raising children and VAT rebates for pensioners.

The future benefit for mothers with two and three children will place an incredible burden on the Hungarian budget, according to the latest study by the GKI. The government is letting the deficit go despite the fact that it should be striving to increase revenue and reduce spending. With a little luck, however, it may encourage childbearing and consumption, which may bring some of it back. All that is needed is dynamic economic growth.

The aim of the newly published laws is to ensure that those who have children are not disadvantaged in any way.

It would be a civic, conservative initiative to return the tax credit for self-care to mothers who are exempt from personal income tax.