Presenting the budget bill in parliament, Mihály Varga, the finance minister, said next year’s budget would ensure steady economic growth. Within the pursuit of a disciplined fiscal policy in 2019, more money would be available for family support, measures to address demographic problems, job creation, retaining the workforce, preserving the real value of pensions, developing the economy, and protecting Hungary’s borders, he said.
The government has secured the resources for this spending thanks to growth that has outstripped the EU average since 2013, Varga added.
When drafting the budget, the cabinet took into consideration developments in the global economy, which could turn sour, so reserves have been increased accordingly, Varga said. In 2019, both the general reserves and a safety reserve linked to meeting the deficit target will increase by 1.5 times compared with this year, he added. The public debt-to-GDP ratio will continue to decline, falling to 69.6 percent according to EU methodology. Deficit spending will only go towards developments and investments, he said.
