Finance Minister Mihaly Varga told Kossuth Radio on Sunday that the most important component of next year’s budget is the Economic Restart Action Plan, which will allow everyone who has been put in a difficult situation to recover from the coronavirus pandemic. He stressed that I would like to restore as soon as possible the growth potential that characterized the years preceding the pandemic. According to him, 2022 may already be this year.
In 2021 the economy is expected to reach the point where it was ahead of the pandemic at the end of 2019, and in 2022 it expects economic growth of 5.2 percent, a target deficit of 5.9 percent of GDP and a diminishing debt ratio. Situations. He added that there are important social policy goals, including family support, the rebuilding of a 13-month pension, and the introduction of tax breaks for those under 25 years old.
The Minister of Finance noted that the Economic Protection Fund is very important, in which various resources have been collected, for example, to launch investments and protect jobs, as well as the Epidemic Protection Fund. According to Mihaly Varga, the 2022 budget will maintain its structure, but it is already a question of restarting the economy, in which 7,300 billion Swiss francs will be allocated in the budget. He added that there will continue to be health insurance and an epidemic prevention fund with a budget of 3600 billion HUF.
At the same time, Mihaly Varga explained: He is confident that after 2022 there will be less and less focus on epidemic protection.
The Minister of Finance considered that in the first quarter of this year, the emergence of last year’s decisions, especially in the field of investments and developments, can be felt, and the investments launched will gradually appear in the operation of the economy. For this reason, Mihaly Varga expects a strong “bounce”. He sees the biggest boost to economic growth since 2016 coming from an agreement to cut taxes and raise wages with employers and employees. It is to explain:
If we can return to this path and there is a gradual but strong increase in wages, but at the same time we can reduce taxes, the competitiveness of the Hungarian economy can improve, and the growth path can be visualized again in the 4-5% range.
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