June 16th, 2017

Parliament approves 2018 budget

Parliament approved on Thursday the government’s 2018 budget bill. The bill was approved with 127 votes in favour and 62 votes against. The 2018 budget targets revenue of 18,751.5 billion forints (EUR 61.2 billion), expenditures of 20,112.1 billion forints, leaving a deficit of 1,360.7 billion forints. The deficit is over the 1.166.4 billion forint gap targeted for 2017. The 2018 deficit target as a %age of GDP is 2.4%, calculated with European Union accounting rules. Operating revenue and expenditures will balance out, while investments will create the deficit. The budget targets 4.3% GDP growth, up from 4.1% projected for 2017. It assumes an inflation rate of 3%.

Parliament also voted to raise the revenue and expenditure targets of the 2017 budget by 436.4 billion forints (EUR 1.4 billion). The amendments raise the revenue and expenditure targets to 17,867.7 billion forints and 19,034.1 billion forints, respectively, leaving the cash-flow-based deficit unchanged at 1,166.4 billion forints. The amendments top up fiscal reserves for “extraordinary government measures” by 30 billion forints to 140 billion forints. They also add 35.9 billion forints to the National Protection Fund, bringing it to 95.9 billion forints. Expenditures of the National Development Ministry were raised by 76.6 billion forints.

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