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According to information from Minister of Finance Mihály Varga, which was described by Portfolio.hu, However, the current crisis has hit Hungary in a stronger position, thanks to which we were able to resolve the crisis from internal sources.
The government now expects
- GDP will fall 6.4 percent this year,
- and the deficit is around 9 percent of GDP.
- Our debt-to-GDP ratio is expected to be around 80 percent in parallel.
It is reassuring that the government continues to adhere to the debt management principles that have been followed so far, which means that with a 3.5 percent increase in GDP, the budget deficit may decrease next year, the share of foreign exchange may decline and domestic financing may strengthen. After this difficult year this year, the deficit may decrease next year, but the net need for financing from the central budget may be HUF 3,332 billion, according to Finance Minister Mihály Varga.
The aim is to reduce the budget deficit and debt also in the coming years. The net financing need for 2021 is expected to come from two sources:
- About half of the forint bond market, with more frequent swap auctions and
- The issuance of a new 30-year green guilder bond is also planned.
- Significant resources would be obtained from the retail market, mainly based on the success of MÁP +.
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