Here’s the MNB’s proposal: I’d save the economy with a huge package

Hungary has successfully defended itself against the first wave of the coronavirus epidemic. The emergence of the second wave poses more complex challenges in social and economic life than ever. The protection of health and the maintenance of the functioning of our economies must be solved at the same time, emphasizes the MNB.

Facing the crisis requires strong and coordinated action in fiscal policy, monetary policy, and competitiveness policy.

– I raised.

Elements of the central bank proposal package:

Labor market proposals

1. Continue and simplify employment protection wage subsidies
2. Extension of the workplace protection action plan to employees who lose their jobs during a coronavirus epidemic
3. Reintroduction of tax incentives related to the epidemic situation
4. Expansion of public employment and support for employment in the market
5. Introduce a retraining allowance or, if the exam passes, restart the applicant allowance

Suggestions for families

1. Increase the amount of the family tax credit
2. Introduction of the PIT exemption for mothers with three children
3. PIT exemption for part-time mothers raising young children
4. Provide emergency sick pay for child care workers if needed
5. Start swallowing programs
6. Higher job search allowance for unemployed raising a child

Housing market proposals and housing creation

1. Finalize the brownfield designation
2. Restoration of a general tax on housing of 5% with a special sectoral tax of 4%
3. After the construction of private real estate, VAT refund on all settlements.
4. Youth Housing Rental Program and Government Employees
5. Expansion of the circle and raw material production capacity of domestic construction

General and specific demand recovery measures

1. Specific extension of the loan repayment moratorium with semi-annual review
2. Reduce gas prices in several stages
3. Salary increases for health and education workers
4. Supporting national tourism through the SZÉP card and direct benefits
5. Supporting the purchase of basic food for large families and retirees
6. Reduction of the VAT rate on food delivered and withdrawn to 5 percent

Proposals for the financial system

1. Encourage corporate fundraising through guarantee programs.
2. New Home Loan Program to Promote Energy Efficient Home Construction
3. Reform of corporate bankruptcy procedures
4. Reinsurance shared risk
5. The active participation of MFB in the creation of an asset manager and the support of infrastructure projects.

Increase investment from government, FDI and companies

1. Development of health infrastructure and research capacity
2. Development of road and rail connections with the border areas inhabited by Hungary
3. Accelerate the nursery development program
4. Accelerate the use of previously paid EU advances 32. Increase the attractiveness of investments in high value-added FDI
5. Discount on local business tax after investment and R&D spending
6. Rescue of companies of national importance in danger

Proposals for a green economy

1. Accelerate the transition to renewable energy production and develop the electricity grid.
2. Comprehensive building energy efficiency program
3. Infrastructure for the use of biological and food waste
4. Renovation of water services
5. Agricultural infrastructure development

Accelerating digitization

1. Government Order for Domestic Made IT Equipment
2. Support Hungary’s information security software industry and develop digital creative industry
3. Link investments and government IT databases to e-government solutions
4. Development of digital infrastructure based on 5G
5. Increase the efficiency of real estate transactions and construction through IT improvements.

Daily organization of life and economy.

1. Support to work from home
2. Strengthen the rules of use of public transport
3. Flexible configuration of school defense rules
4. Maintaining distance learning in higher education
5. Expansion of state-sponsored coronavirus testing
6. Provide telecommuting at the request of a working child

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