Hungarian government recorded a record budget deficit due to Orbán's pre-election spending
Kyiv • UNN
Hungary's budget deficit reached $6.4 billion due to pre-election social payments. Fitch Ratings changed the country's rating outlook to negative.
Hungary's Ministry of Economy reported a budget deficit of 2.14 trillion forints, equivalent to $6.4 billion, in February. This is the second-largest monthly figure in the country's history, recorded amidst preparations for parliamentary elections scheduled for April 12. This was reported by Bloomberg, writes UNN.
Details
The sharp increase in expenditures is linked to the active social policy of the current Prime Minister Viktor Orbán, who is trying to secure his fifth consecutive term. In February, the budget balance included significant payments for salary increases for teachers and public sector employees, mortgage subsidies, and expanded tax benefits for mothers. The government took these steps amidst fierce competition from the opposition "Tisza" party led by Péter Magyar, which, according to polls, is ahead of the ruling "Fidesz" party.
Forecasts and reaction of international rating agencies
Viktor Orbán previously canceled fiscal targets for next year and stated that he does not plan to conduct budget consolidation immediately after the elections.
The government forecasts a deficit of 5% of GDP for 2026 and 2027, which has already raised concerns among international financial institutions. In particular, Fitch Ratings lowered Hungary's credit rating outlook from "stable" to "negative," citing a significant deterioration in public finances due to excessive pre-election spending.
Alternative opposition strategy
Opposition leader Péter Magyar promised, if he wins, to curb government spending and focus on unblocking frozen European Union funds.
Representatives of the "Tisza" party emphasize that their program to combat corruption and strengthen the rule of law will allow them to quickly attract European funds to stabilize the economy. Currently, independent polls confirm a double-digit lead for the opposition among determined voters, making the upcoming race the most unpredictable in decades.
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