Hungary’s 2027 budget plan envisages reorganising the roughly 45,000 billion HUF expenditure side of the state budget, with a planned cut of 1465 billion HUF, equivalent to 1.5 percent of GDP.
Spending shifts toward low earners
The draft channels funds toward lower-income groups even as it trims overall outlays. Social spending is set to rise by 734 billion HUF under the plan.
Within that increase, doubling the family allowance is expected to cost 300 billion HUF. Raising minimum pensions and other low benefits would add 123 billion HUF, while the first stage of a pensioner SZÉP card is put at 90 billion HUF.
Ministries expected to find savings
The draft expects ministries to deliver 447 billion HUF in savings beyond funds already transferred, with a further 700 billion HUF in savings carried over into next year.
Those three measures, Otthon Start, the 14th-month pension and personal income tax exemptions, would have consumed 1080 billion HUF next year had they continued. Finance minister Kármán András said the ministry will check implementation during the year with a strong controlling approach.
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The largest risk flagged around the plan is whether the spending cuts can actually be implemented.
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