Mihály Varga agitated tax cuts and state subsidies against the coronavirus

According to Mihály Varga, due to the second wave of the epidemic, the government is preparing for new economic protection measures, since in the spring, for example, there may be another tax cut.

Hungarian GDP could grow by an impressive 4-5% next year

– indicated the head of the ministry in case whether vaccinations can begin in the second trimester of next year. He identified the end date of the vaccine as the most important issue for the economy. If no effective vaccine is available by the middle of next year, we can hardly expect a substantial increase in 2021.

According to him, to maintain the viability of the country, four aspects must be enforced:

1. demand needs to be stimulated in certain sectors, such as tourism and construction,
2. Jobs must be protected, for which it is essential that companies do not go bankrupt or reduce their capacity,
3. new production opportunities must be provided, i.e. investments must be supported,
4. Care must be taken to ensure that the billions of public spending on crisis management support efficient and competitive economic solutions.

The tax cut could mean specific support for some sectors, as in the first wave, and such support for the construction industry:

In previous years, from VAT cuts to state aid, a number of steps have been taken to boost the industry, one or more of which can be restored.

And extending the credit moratorium could help families and companies in temporary difficulty, predicted (?) The decision of the economic operation today.

Mihály Varga pointed to EU funds and the largest possible accumulation of reserves as the source of the measures.

This year, Hungarian GDP may fall by 5 to 6 percent, which may be accompanied by a budget deficit of 7 to 9 percent, and public debt may rise from 66 percent at the beginning of the year to 76- 78 percent of GDP.

Cover image: MTI / Péter Komka