Assumed growth of GDP by 4-5 per cent and decline in the average annual inflation rate to 10-11 per cent belong to the main starting points for the state budget of Hungary for this year.

The expenditure side of the state treasury should reach 3510.6 bn. Forints (HUF). The planned deficit of the state budget therefore represents 374,2 bn. HUF, which should be just below the threshold of four per cent of GDP. The budget deficit should be decreased in the future by half per cent a year. Thus in two years time the budget could achieve a level of a three per cent deficit, which corresponds to the criteria of the EU.

From the total expenditures of the state budget for the activity of central bodies of public administration and other central authorities the allocated amount is 1 086.8 bn. HUF (31% of all planned expenditures), which means an increase by 19.3 per cent. The amount allocated for local governments is 440.5 bn. HUF (12.5% of the total budget), and this amount represents an increase compared to 1998 by 7.4%. For various agricultural aids, besides the budget of the relevant ministry, it will be more than 87 bn. HUF. On the other hand for family and social benefits the budget reserves 294.3 bn. HUF (increase by 20.6%).

Revenue of the state budget in this year should increase by 17-18%. It is planned to have a higher collection of funds from income tax of legal entities by 25%, from excise and monopoly tax also by 25%, on VAT by 20% and from income tax of natural persons by 11%.

Slovak Trade FORUM