Prime Minister Péter Magyar presented the Tisza government’s first own budget to parliament on Monday, setting a planned deficit target of 4.9 percent of GDP for 2027. The figure compares with an expected deficit of 7.5 percent of GDP this year. A detailed press conference on the budget is scheduled for Tuesday at 10:00.
Fiscal room explained
Magyar said the government has identified 4 percentage points of fiscal room for maneuver in 2027. Of that, 2.6 percentage points are planned to go toward deficit reduction, while 1.4 percentage points would be returned directly to the population.
On the revenue side, the government expects 1 percentage point from a billionaire wealth tax along with polluter and mine taxation. A further 1.5 percentage points is expected to come from cuts to state waste, corruption and what Magyar described as bloated administration. The 2027 budget is also planned to include a 300 billion forint security reserve for unexpected situations.
Spending cuts and new levies
Magyar cited 700 billion forints in expenditure cuts already implemented in 2026 at ministries and budgetary bodies, with a further 1,500 billion forints in reductions planned for 2027. The government also said it plans an extra 100 billion forints in revenue from energy companies, and a corporate tax increase for firms with revenue above 180 billion forints.
Road network concession fees are planned to be revised downward, from 566 billion forints to 320 billion forints, which the government said would produce a saving of 246 billion forints.
Wages and open questions
The government said more than 600,000 public service workers would see significantly raised wages, and more than 500 billion forints would go to healthcare. The macroeconomic path underlying the plan, including GDP growth and inflation assumptions for 2027, was not known at the time of the parliamentary announcement, since the budget bill itself had not yet been made public.
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