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Conflicting ministerial statements and mounting deficit and debt figures from week to week also indicate that the Hungarian government does not have a solid budget plan for 2021, but they do not even know how 2020 will end, Népszava wrote.
Billions of billions of guilders are missing from the Hungarian budget in 2021, the law should be amended, the proposal is nowhere, the newspaper summarized.
The Minister of Finance, Mihály Varga, sends contradictory messages about the 2021 budget, according to which it must adjust to the change of situation, and on the other hand, after the veto of the EU budget, he also referred to the financing of the expenses of the next year.
To clarify the market, it would also be necessary to modify next year’s budget, but this proposal is not yet known. Due to strict rules for adopting and amending the budget, Parliament can no longer adopt an amendment to the Budget Act of 2021 this year.
However, according to opposition deputies, it cannot be ruled out that in the last part-periods of December an important budget amendment will be presented to the House in an attempt to modify a completely different bill on the subject, wrote Népszava. (According to the current session plan, Parliament will hold the last session of this year on December 14 and 15).
When the 2021 budget law was passed in early summer, the budget deficit was estimated to be HUF 412 billion this year, although it was already obvious that this was impossible, now the government’s deficit target is nine to ten. times higher, 3,600-4,000 million HUF. This macroeconomic fund alone makes the budget unviable, to which comes the deficit-increasing measures decided by the government after the adoption of the 2021 budget in early summer.
Meanwhile, there are also problems with the 2021 reserves: 25 billion HUF is reserved for epidemiological control, 184 billion HUF for salary increases and 118 billion HUF for general budget expenditures. According to the central bank’s calculations, the total budget reserve for 2021 will amount to just 210 billion HUF, or 0.4 percent of GDP, which is a very modest reserve even in a virus-free year.
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