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Fiscal Council sees budget amendment bill ‘credible’

The budget amendment bill submitted to parliament is credible, and the Fiscal Council has no "fundamental objections" against it, but it sees several risks concerning the fulfilment of its targets, the body said on Thursday.

Hungary’s ESA deficit ratio is set to grow to 3.9 percent from 3.5 percent, while the cash-flow deficit will expand from 3.3 percent to 4.5 percent, the Fiscal Council said on its website, noting that a 3 percent deficit would be “desirable”.

The amended 2023 budget bill targets growth of 1.5 percent as against 4.1 percent initially forecast, it noted, adding that the growth largely depends on foreign market trends. The government’s plan to use revenue from any extra growth above 1.5 percent to reduce the deficit is a welcome development, the council said.

It also noted that the public debt is projected to drop to 69.7 percent by the end of 2023 from 73.5 percent at the end of last year.

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