Hungary to revise upwards 2014 budget deficit target to 2.9% of GDP

By bne IntelliNews September 16, 2013

The Hungarian government is expected to raise its budget deficit target for next year to 2.9% of GDP from current 2.7% of GDP planned under the country’s Convergence Programme for the 2013-2016 period, reported, citing local daily Nepszabadsag.

The measure has been discussed at the latest cabinet meeting on September 11. However, the reason for the upward revision has not been disclosed.

The government will submit for approval to the parliament the 2014 state budget bill by September 30.

As noted, the government targets an ESA95 deficit of 2.7% of GDP in 2013 as well.

The Council of EU finance ministers (ECOFIN) backed on June 21 a proposal of the European Commission to lift the excessive deficit procedure against Hungary, which was initiated in 2004 after the country joined the EU. The Commission made its recommendation on May 29, concluding that the country has taken adequate adjustment measures to keep the fiscal deficit below the 3% threshold in both 2013 and 2014.

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