Will this save Hungary's 2025 budget?

So far, we have detailed data for the first nine months of the 2024 budget. It shows, for example, that "payments related to state assets amounted to HUF 264.1 billion in the first nine months, with quota sales, concessions and dividend payments being the main items". According to the original estimate, the government expected to receive HUF 383.5 billion for the whole of this year on this heading.

In comparison, it is striking to see from the 2025 budget that

the government expects to receive huf 754.4 billion in payments related to state assets.

In other words, the government has pencilled in almost twice as much in state asset revenues for next year as it planned for this year.

Examining the details of the draft 2025 budget, we can see where this gigantic revenue from sate assets is coming from. The government has budgeted dividend income of HUF 319 billion for the Ministry of Energy, and HUF 42.1 billion for the Prime Minister's Office.

The detailed figures in the budget bill suggest that since the HUF 319 billion dividend income is under the Energy Ministry heading, MVM will make this payment, as in previous years.

We learned this summer that the company could pay HUF 150 billion as interim dividend in the 2024 budget (this amount is not included in the above table of appropriations).

We also previously reported that in November 2023 , in order to improve last year's budget balance, the government already partially 'picked MVM to the bone' when the energy company paid over HUF 300 billion as interim dividend to the state coffers.

It is worth remembering that for some time now, dividends from listed companies have no longer directly benefited the public purse, as many of these assets have been transferred to public interest trusts.

Cover image (for illustration purposes only): Portfolio