The government began distributing money at the end of the year, spending 900 billion guilders in 10 days.

A government resolution was published in the Hungarian Gazette on Saturday, which also included expenditures made at the expense of the Economic Protection and the Epidemic Protection Fund. According to them, the government withdrew 445,406 billion HUF from the Economic Protection Fund, which had long been emptied.

According to the collection of the Portfolio, the budget spent at the expense of the fund already amounts to HUF 2,984 million.

What is really interesting, however, is that with the last three government decisions of this type, the government spent a total of 901 billion HUF in just 10 days. The acceleration of the spending of funds in the fund is also spectacular in the following figure (30% of all the spending was made in the last days):

In other words, with its three decisions, in 10 days the government spent almost as much of the fund as it originally covered (HUF 923 billion). With its latest spending, the government has exceeded this original budget three times.

The enormous dispersion of money observed in recent days may indicate that the government is no longer concerned about the budget deficit target for this year, especially by now adopting the upper limit of the deficit target range indicated since August (7-9% of the GDP at that time, Mihály Varga). baseline scenario. In light of spending in recent weeks, he gradually adjusted the deficit target to reality: the 7-9% band went to 8-9% a few weeks ago, and last week the Minister of Finance Mihály Varga pointed out clearly a 9% target. This also means that the government has taken advantage of the room for maneuver it created in August, aiming to increase the deficit by increasing spending.

The 2021 budget will be much more interesting than this year’s, since the original version adopted since the summer has significantly changed in part the government measures (increase in medical salary, increase in funds for general practitioners, home support program , renewal program, etc.) and in part the coronavirus crisis. due to its long-term effects (income will be lacking here).

The biggest winners

According to the government’s decision on Saturday, the government has reallocated resources for these purposes:

• the The government is allocating HUF 210.5 billion for the capital increase and additional payments of the companies subject to the ownership of the NRDP.
• HUF 41.7 billion for the protection of the Church’s built heritage and other investments for the Prime Minister’s Office.
• The government increased ITM spending on road development based on priority social needs by HUF 26.5 billion.
• HUF 22 billion goes to support the Church’s public service and community investments.
• The Environment Ministry will receive an additional 20 billion HUF in support to improve competitiveness as a result of the coronavirus epidemic.
• Thick II. Atomerőmű Zrt. It will receive 11.4 billion HUF for the capital increase.
• The government is allocating HUF 11 billion to improve the competitiveness of healthcare companies.
• The General Directorate for Public Procurement and Supply will receive 10.9 billion HUF.
• The National Athletics Center will reallocate $ 8.9 billion to implement it.
• It provides 6 billion HUF for investments and active recreation programs.
• HUF 5.9 billion are used to finance the projects of the Patient Nursing Order.
• The capital increase of Adria Port Zrt will cost 5.5 billion HUF.
• It will also receive 5.5 billion HUF for the capital increase of Nemzeti Ménesbirtok és Tangazdaság Zrt.

The government spent a further 14 billion HUF from the Central Fund for Remnants, where the most important item of expenditure is the expenditure of police personnel from the Ministry of the Interior worth 6.9 billion HUF. The Ministry of Finance received 295 million HUF for material expenses from the General Directorate of Public Procurement and Supply, of the Central Reserve for Epidemic Control.

Cover Image Source: MTI / Prime Minister’s Press Office / Benko Vivien Cher