Public Debt in Hungary

Hungary - Public Debt
Government unveils long-awaited fiscal package
On 1 March, the government announced its Structural Reform Programme, which is a set of reform bills aimed at reducing the fiscal deficit by HUF 900 billion (around 3% of GDP) annually by 2014. With the implementation of the programme, the Orban administration projects that the fiscal deficit will fall to 1.9% of GDP (2010: 3.8%) and public debt will shrink to between 65% - 70% of GDP (2010: 78.9%) by 2014. In addition, the government finally committed itself to keeping the deficit below the 3.0% of GDP threshold this year, as determined by the Maastricht Treaty. The measures outlined in the programme will be gradually implemented in the coming years and revolve around seven key areas, namely: employment and labour market, pension system reform, public transport, education, drug subsidy system, state and municipal funding, and contributions to the fund established to reduce public debt. The lion's share of the deficit reduction comes from projected savings, in particular from cuts to unemployment benefits and a reform of the drug subsidy system. Only about 25% of the total is projected to come from increased revenues, most notably from the extension of the current bank tax rate until to 2012, an additional year than initially intended. The announcement of the fiscal tightening measures was welcomed by the market, in particular as preliminary budget figures showed deteriorating public sector figures, with the cash balance deficit reaching 84.1% of the full-year target in February. Although most analysts broadly share the Economy Ministry's view that February's dismal reading mostly reflected seasonal factors such as lower tax revenues and large interest coupon payments they point to the figure as a strong case for further fiscal tightening measures.
Hungary - Public Debt Data
2015 | 2016 | 2017 | 2018 | 2019 | |
---|---|---|---|---|---|
Public Debt (% of GDP) | 76.2 | 75.5 | 72.9 | 70.2 | 66.3 |
Hungary Facts
Value | Change | Date | |
---|---|---|---|
Bond Yield | 2.08 | 0.0 % | Dec 31 |
Exchange Rate | 295.1 | -0.68 % | Jan 01 |
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Economic News
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Hungary: Economic sentiment ticks up in January
January 31, 2023
The GKI economic sentiment index, a composite indicator, rose to minus 20.5 in January from minus 20.8 in December.
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Hungary: MNB stands pat in January
January 25, 2023
At its 24 January meeting, the Monetary Council of the Hungarian National Bank (MNB) left its base rate unchanged at 13.00% for the fourth consecutive meeting.
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Hungary: Inflation comes in at highest level since March 1996 in December
January 16, 2023
Inflation rose to 24.5% in December from November’s 22.5%.
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Hungary: Industrial output records slowest expansion since October 2021 in November
January 16, 2023
According to a second estimate by the Statistical Institute, industrial output grew 0.8% year on year in November (October: +5.0% yoy).
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Hungary: Economic sentiment improves somewhat in December
December 23, 2022
The GKI economic sentiment index, a composite indicator, rose to minus 21.3 in December from minus 22.5 in November, which had marked the lowest reading in 23 months.