The Hungarian government submitted its draft 2027 budget bill to Parliament late on Friday night. The bill would lower central subsystem expenditure by 1437 billion forints to 47,588 billion forints, while the cash-flow deficit would fall from 7110 billion forints to 5103 billion forints. The accrual deficit would decline to 4.9 percent of GDP under the draft.
Growth and revenue assumptions
The draft rests on assumed GDP growth of 2.4 percent and inflation of 3 percent. General government public revenues are projected to grow by 7.7 percent to 34,360 billion forints, with corporate tax revenue rising by 42 percent. A new wealth tax is expected to bring in 200 billion forints. Finance Minister Kármán András said the budget was prepared in the spirit of justice and development, improving the position of social groups he said previous governments had overlooked, and marking the start of what he called the recovery of the Hungarian economy.
Winners and losers across ministries
Several ministries face sharp cuts to their budget frames. The Ministry of Transport and Investment would see its frame reduced by 743 billion forints, the Ministry of Economy and Energy by 513 billion forints, and the Ministry of Science and Technology by 305 billion forints. Other areas gain funding: health sector spending would rise by 326 billion forints, education by 281 billion forints, interior ministry funding by 211 billion forints, and social and family affairs by 186 billion forints.
The government’s October savings package totalled 1465 billion forints. Health funding would rise by 510 billion forints compared with the previous year. Municipalities would gain relief of 30-35 billion forints from the planned abolition of payments into the regional development fund from 2027. The National Asset Recovery and Asset Protection Office would receive more than 10 billion forints, a budget set by its own president that the government must submit unchanged.
A pay rise for teachers and educators, affecting 164,000 people, would cost 120 billion forints under the draft. General debate in Parliament may begin no earlier than the 14th day after submission, with 30 hours allotted for discussion, split evenly between government parties and the opposition.
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Source: Hungarian government
