There are “evident reason" why there are differences between the main budget numbers in two very recent law amendment proposals, explained Hungary’s National Economy Ministry in an emailed response to Portfolio.hu.
Lawmakers approved an amendment to the 2011 Budget late on Monday (submitted on 10 June), revising the full-year budget deficit target upward to HUF 1,184 billion from HUF 687 bn. The reason for that was that the state bought the 21.2% stake in fuels group MOL from Russia’s Surgutneftegaz for EUR 1.88 bn (cc. HUF 500 bn).
Two days later, Economy Minister György Matolcsy submitted yet another amendment proposal to the Budget Act that seemingly seeks to revise the full-year goal back to HUF 685 bn.
So, why approve a new target and then reset the old one, you might ask. And you'd be quite right to do so. We have also asked the Economy Ministry that gave the following explanation.
The difference between the main numbers in the two separate bills is merely technical, and the explanation is exceedingly simple.
You always need to amend the law that is in effect and while the bill submitted to Parliament because of the MOL stake purchase passed in Parliament on 20 June, it has not come into effect yet. Hence the amendment proposal submitted on 22 June referred to the budget law that is in effect.
But then the law passed on 20 June will become effective at some point. Then what? Well, lawmakers will need to overwrite it with yet another amendment proposal, right? Right.
It’s crystal clear. Listen! The ministry will submit an amendment proposal that will amend the amendment proposal to the budget and so it settle this nice little controversy once and for all. Hopefully.
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