Hungary’s government has lowered its 2026 general government deficit target to 7.5 percent of GDP, according to an amendment to the 2026 budget law published in the Hungarian Official Gazette, the Magyar Közlöny, on Wednesday. Without a change of government, the deficit would have reached 8.3 percent of GDP, the government said.
Budget figures under the amendment
Under the amendment, central subsystem expenditure for 2026 totals 49,025 billion forints, against revenue of 41,915 billion forints. That leaves a central subsystem deficit of 7,110 billion forints.
The figures compare with the 2025 budget law, which planned expenditure of 43,781 billion forints and revenue of 39,562 billion forints, a deficit of 4,218 billion forints. The original 2026 deficit plan was 3.7 percent of GDP.
Growth and debt outlook
The government said growth in 2026 may fall short of the planned 4.1 percent, and could be less than half that figure. Growth in 2025 came in 2 percentage points below plan. The government debt ratio stood at 74.6 percent of GDP at the end of 2025 and could reach 77.5 percent in 2026.
The amendment sets a goal of meeting the conditions for euro adoption by 2030.
Measures and reserves
The revision includes 400 billion forints of deficit-reducing measures. It also creates a 500 billion forint emergency fund, known as the Havária Fund, for drought, the energy crisis and unforeseen spending.
Social measures are also part of the package. They include support for school starts, a VAT exemption on prescription drugs, and a cut in VAT on firewood from 27 percent to 5 percent. The social firewood framework is to be doubled.
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