Lawmakers approved the government’s 2021 budget which the finance minister said had been dedicated to economic protection and maintaining a state of preparedness to the novel coronavirus epidemic.
At the same time, he said it provided sufficient resources for supporting families raising children, showing the appreciation of pensioners, saving jobs and creating new ones. The budget targets expenditures of 23,465.4 billion forints (EUR 68bn) and revenue of 21,974.2 billion forints, resulting in a deficit of 1,491.2 billion forints. It assumes a GDP growth rate of 4.8% and targets a deficit of 2.9% of GDP, calculated according to the European Union’s accrual-based accounting rules. It assumes 3% annual average inflation, level with the National Bank of Hungary’s mid-term “price stability” target. The budget targets a decline in public debt as a percentage of GDP to 69.3% at year-end from an expected 72.6% at the end of 2020.
The budget has an independent chapter for a “Health and Pandemic Defense Fund” with expenditures of 2,944.3 billion forints. It also has an independent chapter for an “Economic Defense Fund” with expenditures of 2,610.4 billion forints. The budget was approved with a vote of 133 for, 61 against and 0 abstentions.