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14th June, 2018

Varga presents 2019 budget draft



Finance Minister Mihaly Varga presented the 2019 draft budget in Parliament on Wednesday, according to which budget expenses will amount to 45.2% of GDP. This signals a continuation of the trend of declining budgetary redistribution, Index notes.

The budget deficit target is Ft 998.4 billion, the disparity between Ft 19.6 trillion revenues and Ft 20.6 trillion expenses. The GDP target is Ft 43.9 trillion. The budget deficit will be 1.8% of GDP, while state debt is to be cut to 70.3% of GDP.

The flat 15% personal tax will remain in place next year, one of the lowest in the EU, Varga underlined. The recent VAT cuts will also be maintained.(

The 2019 budget, Varga said, is aiming security, economic growth, supporting families and whole employment. Crisis signs in the Eurozone will be watched closely and the reserves in the budget will be increased one and a half times, Varga said.

The Parliament will vote on the final version of the 2019 budget on July 20. (index.hu; napi.hu; hvg.hu; magyarhirlap.hu; magyaridok.hu; nepszava.hu; KR)
14th June, 2018

MFB opens new credit line with CEB



State development bank MFB has opened a new €75 million line of credit with the Council of Europe Development Bank (CEB), it was announced on Wednesday.

MFB will draw the first Ft 9.3 billion credit to finance student loans in Hungary with better than market rates.

MFB and CEB signed a previous credit line contract in 2014. Between 1999 and 2014 MFB opened a total of €735 million in credit lines with CEB. (portfolio.hu; napi.hu; origo.hu)
14th June, 2018

Industrial output up in April



Industrial output was up 7.8% year-on-year in April, the Central Statistics Office (KSH) announced in its final figures, which were identical to the preliminary data, on Wednesday.

According to workday-adjusted data, industrial output was 2.9% higher. There were two more workdays in April 2018 than in April 2017.

Industrial exports rose 8.6% while domestic industrial sales went up by 5.9%.

Industrial production rose 0.2% from March to April, according to seasonally and workday-adjusted figures.

In the first four months, industrial output increased by 3.8%. Industrial exports went up by 1.9% and domestic industrial sales rose by 5.9%. (ksh.hu; napi.hu; hvg.hu; origo.hu; magyaridok.hu)
14th June, 2018

Domokos floats state vouchers idea



Public-sector competitiveness could be improved by issuing electronic vouchers to public-sector employees, head of the state audit office ASZ Laszlo Domokos told Magyar Idok on Wednesday.

Employees could use this money only to purchase services and goods at pre-defined and mostly state sector firms, he said.

The proposed public-sector salary supplement coupons could be used only for education, health care or saving purposes.

This would be a win-win situation and would meanwhile counter the black economy, while boosting public-sector wages and helping state- and local government-owned companies, Domokos argued. (magyaridok.hu; napi.hu; portfolio.hu; hvg.hu; index.hu)
14th June, 2018

Parragh questions pensioner co-ops



It is unnecessary to create an additional organisation for employing pensioners, head of the Chamber of Commerce and Industry (MKIK) Laszlo Parragh said in Nepszava as he questioned the existence of newly launched pensioner co-operatives.

Allowing companies to pay a decreasing labour tax according to the growing age of employees, as they approach the retirement age, could be a solution, he suggested.

Some 67% of companies reported a dearth of skilled labour in a MKIK survey.

The pool of those in public works schemes and also inactive people is still available to the private sector, Parragh noted. The possibilities of teleworking have not been fully utilised either, he said. (nepszava.hu; napi.hu)


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