PM spokesman says cbank governor criticism result of resentment

Budapest, November 11 (MTI) – Central bank governor Andras Simor’s criticism of the budget results from resentment he feels against the government, the spokesman of the prime minister said on Thursday.

Simor has taken offence because of the monthly 2 million forints cap on salaries introduced in the public sector which resulted in a significant cut in his salary, said Peter Szijjarto.

    Earlier on Thursday Simor criticised the government for its failure to consult with the central bank when it drafted the 2011 budget bill.

    Szijjarto said that Economy Minister Gyorgy Matolcsy should be asked about the affair but called is unlikely that Matolcsy submitted the bill without duly observing the related legal provisions.

    ”Simor opposes the new tax system because it gives preference to the interests of the Hungarian people and the country over those of off-shore companies,” said Szijjarto. The current government does not want to continue the abortive economic policies of the previous government, he added.

    In response the central bank’s criticism of the lack of structural reform in the budget, Szijjarto said that no Hungarian government had ever implemented as significant reforms in as short time as Viktor Orban’s current government. He quoted the example of setting up a smaller government, halving the number of representatives in local councils and plans to downsize Parliament by half.

    A simple and proportionate tax system supporting families and labour will replace the current overcomplicated system, Szijjarto said. Additionally, the government will enable private pension fund members to return to the safer state pension system, he added.