The Convergence Program states that, based on the results of the Economic Protection Action Plan, the government has announced the Economic Restart Action Plan, the measures of which will support the long-term growth of the Hungarian economy.
In addition to financial incentives to increase investment and competitiveness, the fact that more than 40 billion euros in new EU money will be available to Hungary in the 2021-2027 period will help the economy’s performance, the document says.
This growth is supported by the fact that tax policy continues to focus on lowering taxes on employment, reducing the burden on businesses, increasing the efficiency of tax collection and simplifying the tax system, the document says.
The program is likely to grow by 4.3 percent in 2021 and by 5.2 percent in 2022, after which the Hungarian economy may expand by more than 4 percent annually. The document will see a deficit of 7.5 percent by 2021 and 5.9 percent next year. The deficit will only be 3 percent in 2024. The interesting thing about the program is that the Cabinet is just relying on the budget deficit to fall very slowly. Based on the forecast, it is already clear why the Fiscal Board and MNB urged faster deficit reduction.
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