Hungarian Prime Minister Viktor Orbán is forced to raise the budget deficit target due to pre-election spending, and additional funding is planned to be raised through bank taxes and foreign currency bond issuance. This is reported by Bloomberg, writes UNN.
Details
It is noted that the forint and Hungarian stocks fell after reports that the budget deficit is likely to rise to 5% of GDP this year, compared to the previous target of 4.1%. According to the Ministry of Economy, the deficit will remain at 5% in 2026, depending on the final approval of the plan by the government.
The ministry plans to raise 370 billion forints ($1.1 billion) from bank fees in 2026, which is double the previous expectations. Shares of Hungary's largest bank, OTP Bank Nyrt., fell by 2.5% after the news. The government also plans to issue foreign currency bonds in early 2026.
Recall
Orbán, who is trailing in the polls ahead of the parliamentary elections in April, announced late last week that US President Donald Trump had agreed to help protect Hungary's economy from risks such as a possible attack on the currency or a downgrade of its sovereign credit rating. Details of the agreement or confirmation from the US are still missing.