Varga: Budget targets realistic

In order to achieve the budget deficit target of 4.5% of GDP for this year, the government has taken a number of decisions to stabilise the budget over the course of the year. The government expects average inflation to be around 3.5-4% this year and to shrink further in 2025.

Varga pointed out that the reorganisation of public investment has led to a reduction in spending of 650 billion forints, the structural transformation of public debt has continued and the foreign currency ratio has fallen below 30%. The government assumes that the change in the global interest rate environment will enable a reduction in interest expenditure next year.

In response to questions from committee members, the minister explained that the government considers rail transport to be extremely important and always provides the necessary funds for operation and modernisation, with almost 150 billion forints for developments this year alone. The 2025 draft budget is to be submitted to Parliament by 15 November.