Hungary's Budget Deficit Shift: 5% GDP Target

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Recorded11 Nov 2025

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Hungary Shifts Economic Strategy: Maintains Budget Deficit at 5% GDP, Plans Foreign Currency BondsHungary has announced a significant change in its economic strategy, opting to keep its budget deficit at current levels rather than aiming for annual reductions. The government has set deficit targets of 5% GDP for 2025 and 2026, up from the earlier goal of 3.7%. This decision will keep Hungarys debt-to-GDP ratio around 73.5% next year, instead of decreasing.To fund the increased shortfall, Hungary plans to issue foreign currency bonds in early 2026, potentially tied to EU SAFE program loans. The government has also taken steps to free up 400 billion forints in its budget, including freezing 192 billion forints from its general reserve and raising the bank tax rate from 20% to 30% for profits over 20 billion forints. These measures are expected to generate an extra 180-185 billion forints in revenue next year.Hungarys Minister of National Economy, Márton Nagy, believes there are no further risks to next years deficit and that credit rating agencies will not change their current ratings, as they had already predicted deficits around 5% for next year.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.

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