General government deficit target for 2022 set at 5.9% of GDP

HUNGARY - In Brief 04 May 2021 by Istvan Racz
The draft Budget Act for 2022 has been submitted to parliament today. It aims at a deficit of 5.9% of GDP, down from this year's 7.5% target and 2020's 8.1% actual. This should secure a small reduction of the gross debt ratio, to 79.3% of GDP in 2022 from the 79.9% expected for this year and last year's 80.4% actual.The new proposal for next year's deficit and debt target is no surprise at all. Last month, our forecast included a deficit of 7.9% of GDP this year and one of 6.3% for 2022. No one could seriously expect that the government would aim at a more rapid reduction of the deficit ratio in an election year. Additionally, the EU will still treat 2022 as a year with extraordinary conditions, and thus a government deficit higher than 3% of GDP will not be taken as a breach of the EU's fiscal rules.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.