Economy Minister: State Guarantee of HUF 60 bn Offered on Loan to Revamp Metro 3

Budapest (MTI) – A state guarantee of 60 billion forints (EUR 195m) will be provided to a loan to upgrade Budapest’s third metro line, economy minister Mihaly Varga said on Sunday.

Varga also told commercial channel ATV that the e-toll system would not be extended to include buses and a government decision on this has already been passed.

In connection with proposed tobacco legislation, the minister said that since 2010 the government had taken the standpoint that smoking damages health and carries major social spending costs, and so the cabinet is determined to cut it back. In addition, the European Union requires that the amount of the tax should approach the European average from year to year. If the change to the tobacco tax affects bigger players to a larger extent then “I can accept that,” he added.

On the subject of the tax on advertisements, Varga said he did not see anything wrong with the hike, “given that if someone dominates the market and makes a profit on the vast majority of the revenues generated there, then we have decided correctly in this matter.” He added that the reason for the tax hike on adverts was down to the need for budget revenues which would be turned towards important social, health-care and educational goals.

Asked in the interview why there was a need for extra revenues when the Hungarian economy is stable, Varga said: “There are debts that must be repaid and the public debt — compared with neighbouring countries — is still too high, and besides which there are tasks, too, which we have been able to provide support for only to a lesser extent.” He noted as an example the cabinet decision on providing greater support for public transport in the capital.