Orbán: Economy has sufficient resources for modern education system

Budapest, May 20 (MTI) – The Hungarian economy has the funding necessary for a predictable and reliable education system that offers up-to-date knowledge, Prime Minister Viktor Orbán said on Friday.

The budget amendment this year is necessary following the deal struck with teachers, Orbán said during his regular interview to public radio.

“Since the economy performed well, despite some shadows in the last quarter … it is possible to responsibly amend the 2016 budget, and we can therefore increase the money spent on education,” he said.

Commenting on proposed VAT cuts on food products in the 2017 budget, he said this will mostly help people with moderate means because they spend the largest part of their income on basic foodstuffs.

He also commented on the planned drop in the VAT of catering services to 18 percent, which he said was necessary because the sector cannot generate enough revenue to pay the current tax burdens. The possibility of further reduction in 2018 will be examined in the future, he added.