Finance Minister Mihály Varga submitted the budget for 2025 to parliament. ‘It is a budget of new opportunities, new economic policy and peace,’ he said.
The finance minister justified the late submission (compared to previous years, when Fidesz swore by a budget passed before the summer break) with ‘the uncertain international situation’. Now, however, the outlook is optimistic, as there is hope that the world will find peace again after the US elections. This year, the economy has had a harder time getting going than expected. Nevertheless, higher wages have led to an increase in private consumption. International organisations believe that Hungary’s economic growth will already be among the best in the EU-27 by 2025, with the Orbán government focusing on growth, rising wages, more support for families and strengthening SMEs.
Relative savings on defence
Varga announced that the budget deficit would fall further to 3.7% of GDP in 2025, the economy would grow by 3.4% and average annual inflation would be 3.2%. Gross debt service will reach another 3.8% of GDP. The defence budget is set at 2% of GDP in accordance with NATO requirements and amounts to HUF 1,755 billion. Around 1,400 billion forints will be made available for internal security, including a further 40 billion forints for the border fence, which has consumed around 800 billion forints since 2015. The subsidies for families will be increased by HUF 445 billion to HUF 3,575 billion compared to 2024. 880 billion forints are estimated for the officially low energy costs, but the special fund will be dissolved.
Pension payments, including the 13th monthly pension, will already cost the treasury HUF 7,200 billion in the coming year. The education system will receive an additional 500 billion forints, giving it a total budget of 3,875 billion forints, while the healthcare system will receive 3,715 billion forints. In addition to the budget reserve of 100 billion forints, the individual departments have separate reserves in the individual chapters, emphasised the Finance Minister. The exchange rate of 397.50 forints to the euro used in the budget planning is no more than a technical figure; a deviating exchange rate is not a problem.
Adoption before Christmas
The budget debate will take place at the end of November on three days with a total duration of 30 hours, and amendments to the draft can be submitted until 28 November, according to the Vice President of Parliament, János Latorcai. (The KDNP politician was standing in for Parliament President László Kövér on Monday, who is in China on a study trip lasting several days). Once the draft has passed through the committees, the final version is expected to be voted on on 20 December.
