Hungary’s government targets 2.4 pc / GDP deficit, over 4 pc growth in 2018

Budapest (MTI) – The government aims to further reduce the public debt next year and targets 2.4 percent of GDP budget deficit and economic growth of over 4 percent, the government office chief said on Thursday.

János Lázár told a weekly press briefing that the three important targets in connection with next year’s budget are taking steps necessary to secure full employment, supporting families and guaranteeing security.

The most important objective is to ensure economic stability in Hungary, Lázár said, adding that the government planned to keep the rate of personal income tax unchanged at 15 percent in 2018 and to increase defence spending.

No decision has yet been made on the exact rate of the advertisement tax planned for next year, he said.

Speaking on the upgrade of the Paks nuclear power plant, Lázár noted that implementation of the technical and financial agreements was under way. The aim is to hand over the construction site to the Russian construction company in the autumn so the building of the two new blocks can commence in 2018, he said.

Meanwhile, commenting on the plan to introduce a European prosecutor, Lázár reiterated Hungary’s opposition, saying it would require an amendment to the EU’s founding treaty, and besides, joining such body should be voluntary. Further, a country’s judicial system is a matter of national sovereignty, he added.