Government weekly press conference about Paks projects, tax and other important topics

The government is planning to make changes to next year’s budget bill to ensure more funds for a programme aimed at boosting childbirth, to finance public infrastructure projects in connection with the Paks nuclear plant upgrade, and for tourist developments, the head of the government office told his weekly press conference on Thursday. The 1.7 million people who took part in the government’s “national consultation” survey support the government’s positions on the issues that were discussed in the questionnaire, he said.

Government to reallocate funds to support families, finance Paks projects

János Lázár said that 98 billion forints (EUR 31.8m) would be reallocated. Fully 20 billion forints will be rechannelled for projects in Paks such as preparations for a new bridge across the river Danube, and home and road construction, while 16.4 billion forints would be reallocated for tourism. Other reallocations will go towards the government’s new family support programme.

Commenting on recent figures indicating a GDP growth of over 4 percent, Lázár said the Hungarian economy is on a “stable and balanced path”.

Referring to a European anti-fraud office OLAF report about the transparency of EU funds, Lazar said in Hungary “twice as many people submit complaints” compared with the European average. At the same time, out of 41,000 EU subsidy contracts, the investigations concluded last year revealed shortcomings in 13 cases affecting 4 percent of EU funding. According to OLAF, the most serious corruption case in Hungary was the metro 4 scandal, he added.

In response to a question about the revamp of the third metro line, he said the government had originally provided 137.5 billion forints support as requested by the Budapest council, and the EU had approved this “100 percent”. As it turned out later, however, even the cheapest bid for the related public procurement was above this amount, so a tender for a reduced project was invited. But even this amended tender only attracted bids above the 137.5 billion forints available, he said, adding that it would be difficult for the government to finance “more than 100 percent” because the EU would not allow this. Budapest Mayor Istvan Tarlos will be expected to provide a report concerning plans for metro 3 at the next cabinet meeting, he added.