Hungary to amend budget due to expected economic risks – econmin

Budapest, June 23 (MTI) – Due to expected economic risk factors, the Economy Ministry has recommended the amendment of the 2011 budget law, the ministry told MTI on Thursday.  

Economy Minister Gyorgy Matolcsy submitted a bill to parliament on Wednesday to take into account lower revenue and higher spending.


Funds of 182.1 billion forints (EUR 679.5m) set aside in a 250 billion forint stability reserve will be booked as savings and sealed so they cannot be tapped for spending later.


Revenue from corporate tax is expected to be 84 billion forints below target this year and shortfalls of 69 billion in VAT, 16 billion from the Simplified Business Tax and 6.6 billion forints from duties are also expected, according to the details of the bill.


The government has a budget deficit target of 685.7 billion forints.


The ministry said in a statement that the stability reserves would still be sufficient to protect Hungary against external economic shocks.


Because the financial and economic crisis in the EU and the world is not yet over and there are major risks in the economy as well as uncertainty and imbalances, the government will put this money towards the budget and seal off the stability fund.


The budget deficit reached 105.4 percent of the full-year target by May.