Economic growth has been the driver of wage increases, Minister of State for Vocational Training and the Labour Market Sándor Czomba told public news channel M1 commenting on the latest wage data showing that wages in real terms were up by 4.1 percent in the first quarter of 2015.
The flash report of the Hungarian Central Statistical Office (KSH) published earlier today shows that in the initial three months of the year wages in real terms were up by 5.2 percent year-on-year within the national economy. Thus, wages in real terms have been on the rise for the twenty-seventh month, while the number of jobs at private sector enterprises with at least five employees increased by 59 thousand compared to March 2014.
Minister of State for Taxation and Finances at the Ministry of National Economy Gábor Orbán told national TV channel M1 on Monday that Hungary’s government debt level increased to only 77.2 per cent of the GDP by the end of the first quarter from last year’s 76.9 per cent; this represents a very slight increase, considering that household debt is typically generated in the first two quarters of the year.
The special characteristic of the tax package accompanying the 2016 Budget Bill is that it is the shortest of its kind in a decade, consisting only of slightly more than 30 articles that include no new tax types or higher tax rates. Accordingly, common public charges will be lower or left unchanged, Minister of State for Parliamentary Affairs András Tállai said.
The 2016 Budget Bill leaves more money at households through tax reductions, but also on the expenditure side, there will be several fields for which more funding will be allocated, Minister of State for Public Finances Péter Benő Banai told public broadcaster TV1.
Hungary is fully committed to comply with the MoU concluded in February this year with the European Bank of Reconstruction and Development, especially with the clause on gradually reducing the bank tax as of 1 January 2016, Minister for National Economy and EBRD Governor Mihály Varga reiterated following a meeting with EBRD President Suma Chakrabarti in Tbilisi.
In comparison to the prognosis published at the beginning of the year, the European Bank for Reconstruction and Development upgraded Hungary’s growth forecast for 2015 by 0.2 percentage points to 2.6 percent of GDP, while the institution predicts 2.3 percent expansion for 2016.
The Budget of 2016, drafted in the spirit of calculability, predictability and consistency, is more than purely a financial plan: it is the most important pillar of creating a civic Hungary. It is important to enable every Hungarian to experience financial stability, predictable fiscal management and the effects of economic growth. Next year, everybody will make some progress.