Chances high Hungary can exit excessive deficit procedure, says state secy

Budapest, April 3 (MTI) - Based on economic indicators, Hungary has a good chance of exiting the European Union s excessive deficit procedure this year, Zoltan Csefalvay, the state secretary in charge of economic strategy, said on Wednesday.

"If they [in Brussels] look at the numbers only," then Hungary must be released from the deficit procedure, Csefalvay told public television M1.

The deficit of the public sector came to 566.7 billion forints in 2012, or 2 percent of the economic output, he said.

Hungary must be able to demonstrate also that it can keep the budget deficit under 3 percent in the long term, he said. The European Commission forecasts 3.4 percent of gross domestic product in 2013.

The government s forecast is 2.7 percent for 2013 because it projects 0.9 percent economic growth, more than the commission, he said.

Contested items include revenues from the e-toll system and from hooking up cash registers directly with the tax office, Csefalvay said. The government has made the necessary steps in both areas and therefore the risks quoted by the EC can be avoided, he added.

A series of reforms introduced in the past two years will result in stabilisation and consolidation to boost investment, he said.