First step in increasing family tax benefit could cost budget HUF 200 billion - FinMin
According to Mihály Varga, the increase in the child tax credit could have a budgetary impact of HUF 200 billion next year.
He spoke about one of the elements of the government's new 21-point new economic action plan during a break at the Portfolio Budapest Economic Forum. In his opinion, more money for families will support economic growth.
The [2025] budget is being drafted and the details of the economic policy package are being worked out, and the budgetary impact of the programme is being calculated.
The programme is currently in the preparatory phase. Much depends on the outcome of the US elections and the Russian-Ukrainian conflict.
According to Mihály Varga, the government can continue to reduce public debt. This will be supported by economic growth, while inflation will be low at 3%. He added that the government is also saving on lower interest expenditure.
He stressed the exchange rate of the forint as an important factor, as one third of the debt is denominated in foreign currency, so fluctuations in the HUF affect the debt ratio. He stressed that the government is working to reduce the debt.
He admitted that although the promise was that the extra profit tax on banks would be phased out next year,
Varga asked for the patience of financial institutions
in order to stabilise the budget balance.
Our report on Varga's presentation can be accessed at the link below:
Cover photo: Portfolio
