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HATC SAMPLE EDITION:
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16th July, 2026
Karman files changed budget customised to obtain EU funds
The government has submitted amendments to the 2026 budget aimed at meeting the milestones of Hungary’s Recovery and Resilience Plan in order to secure access to EU money.
The bill, tabled by Finance Minister Andras Karman, would increase the capital of state development bank MFB, reduce state guarantee limits for several public financial institutions and reschedule local government contributions under the Competitive Sub-counties Programme.
Under the proposal, MFB’s capital would be increased by euro 688.3 million, financed through a loan from the EU’s Recovery and Resilience Facility (RRF).
At the same time, the bill would reduce the maximum volume of state-guaranteed MFB loans and guarantees from Ft 2 trillion to Ft 1.8 trillion.
The sharpest reductions would affect export finance. The ceiling for state-guaranteed guarantees issued by Exim Hungary would fall from Ft 200 billion to Ft 50 billion, while the limit for state-backed Exim loans and bonds would be cut from Ft 2.2 trillion to Ft 1.95 trillion.
The largest single reduction concerns the Start Garancia, where the maximum portfolio covered by the state counter-guarantee would be lowered from Ft 3 trillion to Ft 2 trillion.
The proposal also revises the timetable for local government contributions to the Regional Development Fund. Instead of earlier deductions, the first payment would be made in November 2026, with final settlement and any reimbursement taking place in March 2027 based on municipalities’ full-year local business tax revenue.
Municipalities with an annual solidarity contribution of less than Ft 50 million would also be brought into the scheme. (portfolio.hu; 24.hu)
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16th July, 2026
Budget Council to lose veto power
The government has proposed a broad reform of the budgetary framework that would significantly reduce the powers of the Budget Council, according to a bill filed by Finance Minister Andras Kalman.
Under the draft legislation, the council would lose its veto over the annual budget and instead be limited to issuing a non-binding opinion.
The timetable for preparing the budget would also change. The finance minister would be required to publish the detailed planning schedule, methodology, macroeconomic assumptions and data requirements by August 31 of each year, while the budget could be submitted to Parliament only between October 1 and 31.
The proposal would strengthen transparency in public finances. Decisions on the use of the extraordinary reserves, the reallocation, blocking or reduction of budget appropriations, as well as certain multi-year fiscal commitments, would require a publicly available government resolution. (portfolio.hu; mfor.hu)
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16th July, 2026
MPs ease and extend windfall tax on Russian oil
Parliament has approved legislation extending the special tax on the price discount between Brent and Urals crude until the end of 2027.
The bill passed with 136 votes in favour and 53 abstentions.
The government said the amendment was prompted by unusually volatile movements this year in the price gap between Russian and benchmark international crude.
The revised rules will apply to tax liabilities arising from August 2026.
Under the new system, a 50% tax rate will apply to the portion of the Brent–Urals price differential between $2 and $5 per barrel, while the existing 95% rate will remain in force for any difference above $5.
The government expects the measure to generate an additional Ft 6.25 billion in budget revenue this year and a further Ft 15 billion in 2027.
The tax was introduced in 2022. It was initially set at 25% of the Brent-Urals price differential, before rising to 40% in August 2022 and 95% in December of that year.
The regime was subsequently eased by introducing a deductible threshold of $7.50 per barrel in April 2023, which was lowered to $5 from August 2024. (portfolio.hu; index.hu; 444.hu)
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