Opposition criticises 2001 budget draft for unrealistic revenue, growth targets

Budapest, November 12 (MTI) – An MP of the opposition Socialist party criticised the government’s 2011 budget draft ahead of the government’s submission of budget-related bills in Nyiregyhaza, NE Hungary, on Friday.

Istvan Tukacs told a press conference that the budget draft is unrealistic, as it builds on revenues which are questionable, as are the 3 percent economic growth projection and 3.8 percent inflation target for next year. He added that the government calculated with revenue from sources it does not own, such as private pension funds.

    Tukacs said the budget draft relied too heavily on domestic consumption to grow, which he said was not guaranteed to happen. The newly-introduced sectoral taxes were sure to stifle consumption, as the companies hit by the tax would translate their rising costs into price rises. Another factor to restrict consumption is the fact that local governments appear to be the losers of next year’s budget plans, Tukacs added.

    The stalling of promised payroll tax cuts means unemployment will rise and the projected job growth is dubious, Tukacs said.