Josef hírek

2011.10.02. 10:20

2012 budget will help avoid "Greek fate", says Fidesz

Budapest, September 30 (MTI) - The government s draft budget for 2012 will help Hungary avoid a "Greek fate" and distance itself from the crisis in Europe, Antal Rogan, a lawmaker of the ruling Fidesz party and head of parliament s economic committee, told a press conference on Friday.

Budapest, September 30 (MTI) - The government s draft budget for 2012 will help Hungary avoid a "Greek fate" and distance itself from the crisis in Europe, Antal Rogan, a lawmaker of the ruling Fidesz party and head of parliament s economic committee, told a press conference on Friday.

Rogan also praised the draft, submitted to parliament earlier in the day, for having stable foundations and including a "record-size" reserve of 300 billion forints. He said that the latter would enable the country to quickly resolve any financial emergencies.

 

The budget draft is a "huge step" in making the personal income tax system "completely uniform and predictable" by 2013. Next year the tax burden will not increase in any income category, while the elimination of the practice of adding contributions to the tax base will benefit low income families, Rogan said. He added that the monthly income for people raising children would be at least a net 10,000 forints higher than in 2011.

 

Raising other taxes are not aimed at plugging holes in the budget, Rogan said, and insisted that "we will only raise consumption-related taxes in areas where they can be realistically collected and where they do not restrict opportunities of Hungarian businesses." While taxes on consumption will somewhat increase, labour-related ones will not. Moreover, the latter can be further reduced in future, Rogan said.

 

Balazs Lenhardt, lawmaker of radical nationalist opposition party Jobbik, said the 2012 budget was "a budget of despair" by which the government "admits that its economic policy has failed" and offers nothing other than austerity. He told a press conference that the government s economic policy would benefit the rich, while the austerity measures would weigh on the poorest groups of society.

 

Sandor Burany, a lawmaker of the main opposition Socialist party, told a press conference after the budget was presented that since the main assumption contained in the draft was an exchange rate of 268 forints against the euro the 2012 budget would become untenable, given the current exchange rate of around 290 forints per euro. He said it was likely that a supplementary budget would be needed.

 

Gabor Scheiring, the economic spokesman for green opposition party LMP, said the budget amounted to 1,000 billion forints of austerity which would punish families, the middle classes and average earners.

 

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