Matolcsy Announces New Austerity Package In Hungary
- 8 Oct 2012 9:00 AM
Economy Minister György Matolcsy on Friday announced Ft 133 billion of austerity cuts this year and a further Ft 397 billion next year, while raising the budget deficit targets for both 2012 and 2013. The 2012 deficit target has been raised from 2.5% of GDP to 2.7%, and the 2013 target from 2.2% also to 2.7%, Matolcsy revealed, citing the unfavourable global economic outlook and worse domestic picture than forecast.
Matolcsy said he now expects a 1.2% decline in GDP this year, while the 2013 growth target has been lowered from 1.6% to 1.0%.
The revised 2012 budget deficit target can not be achieved without freezing funds and making other adjustments, Matolcsy argued.
As Hungary is under the EU’s excess deficit procedure, violation of these targets would bring EU sanctions on Hungary, Matolcsy added.
Source: Hungary Around the Clock
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