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.

Related Articles

Orban first Hungarian PM to visit Kyrgyzstan, wants more business with Central Asia’s Turkic nations

Hungary has opened a $65mn credit line to support partnerships between Hungarian and Kyrgyz businesses in Kyrgyzstan, Minister of Foreign Affairs and Trade Peter Szijjarto said in Kyrgyzstan’s ... more

Fitch dashes Hungarian hopes of an upgrade, affirming BBB- credit rating

In its second scheduled review of the year, Fitch affirmed Hungary's sovereign credit rating at BBB- with a positive outlook on August 31. The decision comes as a disappointment to Hungarian ... more

State-owned MVM Hungarwind invests heavily in new solar power plants

MVM Hungarowind, a unit of the state-owned electricity firm MVM, plans to build 110 small solar power plants, with a maximum capacity of 0.5MW, as part of several projects across Hungary this year ... more