Hungarys parliament passes 2013 budget law, budget gap set at 2.7% of GDP.

By bne IntelliNews December 12, 2012
Hungary's parliament approved on December 11 next year's budget bill, which envisages a deficit of 2.7% of GDP calculated under the ESA-95 terms, MTI news agency reported. The government aims to keep the gap below the EU's 3% threshold in order to exit the Excessive Deficit Procedure (EDP), launched by the EC against Hungary in 2004. Considering that the country may lose allocations from EU cohesion funds in case of a deficit target overshoot, the authorities approved a set of measures including the introduction of a levy on financial transactions, keeping the extraordinary taxes on certain economic sectors as well as imposing a tax on utilities. The business community and international organisations have already expressed concern that the procyclical tax policy would hamper the economic growth prospects of the local economy. The 2013 budget draft envisages revenues of HUF 15,314bn (EUR 54.3bn) and expenditures of HUF 16,156bn resulting in a deficit of HUF 842bn.

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