Government amends 2023 budget

It targets a budget deficit of 3.9 percent of GDP, the ministry said, adding that growth over the 1.5 percent assumption should be used to reduce the deficit.

Year-end public debt is targeted at 70.2 percent of GDP.

The budget increases the utilities protection fund to 2,610 billion forints (EUR 6.5bn) from the originally planned 670 billion, the ministry said. Central reserves have also been increased to 255 billion forints from 170 billion, it added.

The budget also allows for raising all pensions by 15 percent, the ministry said, adding that spending on pensions in 2023 will exceed 6,150 billion forints.

It is dedicated to keeping household utility bills low, the ministry said. The protracted war and the “sanctions-fuelled energy crisis” are a threat to Hungarian families, the Hungarian economy and jobs, it added.

The ministry said the most important task of 2023 would be protecting families and jobs, preserving the value of pensions, keeping the caps on household utility bills in place and preserving Hungary’s peace.