Government submits 2026 budget draft to Fiscal Council
The National Economy Ministry said the budget draft, "built on peace", contains Europe's largest tax reduction program and prioritises support for families and pensioners, while calculating with significant pay rises.
The Hungarian government submitted its 2026 budget draft to the Fiscal Council on Thursday.
The National Economy Ministry said the budget draft, 'built on peace', contains Europe's largest tax reduction program and prioritises support for families and pensioners, while calculating with significant pay rises.
In a message on social media, National Economy Minister Márton Nagy said the draft budget earmarked HUF 4,800bn in support for families, adding that doubled tax allowances would leave HUF 290bn with families raising children, up from HUF 80bn in 2025.
Households will get around HUF 800bn in support in the form of subsidies for the regulated utilities price system, and they will get a further HUF 800bn in interest payments on retail government securities.
Some HUF 450bn has been earmarked for bonuses for Hungarians in uniform, and resources have been allocated for double-digit pay rises for public sector workers in smaller settlements.
In line with Hungary's commitment to keep defense spending at 2pc of GDP, HUF 1,900bn will go toward upgrading the Hungarian Defense Forces.
Around HUF 4,900bn will be spent on economic development, including HUF 2,200bn in European Union funding.
Windfall profit taxes will remain in place in some sectors, while tax preferences for boosting headcount and spending on R+D will rise.
The budget is calculated with 4.1pc GDP growth and 3.6pc average annual inflation.
The primary deficit — excluding the cost of debt maintenance — is set at zero.
The general government deficit target is 3.7pc of GDP, while state debt is set to fall to a year-end 72.3pc of GDP from 73.1pc at end-2025.
The government will submit the budget bill to lawmakers on May 6, after the Fiscal Council issues its opinion on the draft.
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