Posted by: Noëmie van Wylick Posted on: Monday 13 December 2010, 10:37

On Tuesday, the Hungarian Parliament adopted the main figures for the 2011 budget with a sweeping majority. Income targets have been increased by HUF 72.1 billion to HUF 13,151.2 billion so as to cover the HUF 70.7 billion extra spending authorized by the final law. As a result, the 2011 deficit target has been cut by HUF 1.4 billion to HUF 687 billion (but will be increased by local governments' HUF 110 billion debt). The Parliament has voted extra spending for the support of local governments (14.7 billion), the state judiciary services (4 billion) and an additional 22 billion for the compensation of public servants whose net salary would shrink due to the 2011 tax changes.

Budget income targets from VAT, personal income tax, and corporate tax have been raised to cover extra expenditures and to reduce the health-care deficit. The budget does not contain the HUF 2,800-3,000 billion potential income which the government is expecting to flow to the state's accounts from private pension funds in 2011.

bron en meer informatie: ITD Hungary, www.investhungary.com