He highlighted increased support for families, the economy protection action plan, tax cuts and increased spending on security as the budget's four main pillars. The budget targets annual economic growth of 4 percent and a budget deficit of 1 percent of GDP, Varga said. The public debt was seen dropping to 65.5 percent of GDP by the end of the year and inflation was targeted at 2.8 percent. The government had once again drafted a balanced budget, the minister said.

The government would spend an extra 224 billion forints on family support while the economy protection action plan would pump another 500 billion forints into the economy. Varga said the 2020 budget bill targets a narrower deficit and more than doubles the size of reserves from this year. The budget bill targetted revenue of 21,424.7 billion forints and spending of 21,791.7 billion, producing a deficit of 367 billion.

The revenue target was 9.4 percent higher than the target in the 2019 budget while the spending side was 5.9 percent higher. Varga said the 2020 deficit target is less than half the 2019 target. The bill set aside 488 billion forints in reserves, including 378 billion in the National Protection Fund and 110 billion for "extraordinary government measures", more than double the total of 225 billion of reserves in the 2019 budget.

In health-care spending, GPs would receive 139.5 billion forints. The government would spend 2,681.4 billion forints on the health insurance fund compared with 2,442 billion forints this year. Spending on local governments would rise by 6 billion forints from this year's 729 billion forints to 735 billion forints.

Pension funding for women who choose to retire early would be 286 billion forints. Spending on old-age pensions would be more than 2,800 billion forints next year. Orphan support would decrease slightly to 29 billion forints and funding for widow's pensions would be 356 billion forints compared with 357 billion this year.

The defence budget will be increased by over 100 billion forints to 616 billion forints, or 1.26 percent of GDP. In 2012, the government adopted a resolution in which it pledged to increase defence spending by 0.1 percent of GDP from 2016.


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