Hungary: Budget Targets Endangered to Fail

Politics ♦ Published: October 1, 2012; 18:50 ♦ (Vindobona)

In August, Hungary´s budget deficit has almost reached the full year´s level. Analysts doubt whether Hungary may achieve a 2.5% budget deficit this year.

Hungary: Budget Targets Endangered to Fail / Picture: ©

According to Hungary´s Economy Ministry, the budget deficit grew substantially last month. Nevertheless, Hungary´s Prime Minister Viktor Orban emphasizes that public debt must be pushed below 50% of GDP.

At the moment, the country´s public debt quota is at 79%. The income tax rate reaches 16%. However, government spending is relatively high (48.7%). Orban emphasized that…