Similarly to last year, in 2020 the budget also closed the first month of the year with a surplus. Last year, the Hungarian economy grew by around 5 percent, which also provided the foundations for the positive balance of public finances during the first month of this year.

The favourable economic and employment processes are fundamentally being facilitated by the measures included in the six-year wage agreement, the funding being provided for home creation on the part of families, and the job market and economy-whitening measures that have been introduced by the government. Regarding the whole of last year, the employment rate increase to over 70%, the rate of unemployment fell to 3.4%, and the average wage increase by 11.2% during the first eleven months of the year compared to the similar period in the previous year. The minimum wage increased to 161 thousand forints from 1 January 2020, while the guaranteed wage minimum rose to 210.6 thousand forints. Accordingly, similarly to previous years, a significant level of wage increase could also be realised in 2020, meaning the financial situation of Hungarian families can improve further.

Economy protection measures will also continue in 2020 with the continued support of enterprises, a further increase in the competitiveness of the taxation system, and the simplification of administration. All elements of the Economy Protection Action Plan have come into force from 1 January 2020, including a reduction of the Small Business Tax (KIVA) from 13% to 12%, and a reduction of the consumer tax (VAT) on commercial accommodation from 18% to just 5%. Within the framework of the Family Protection Action Plan, beginning on 1 January 2020 women who have raised four or more children will enjoy a lifelong exemption from paying personal income tax, in addition to which we have introduced the childcare fee for grandparents. In January 2020, the central subsystem of public finances closed the month with a surplus of 90.4 billion forints (EUR 267.9 million). Within this, the central budget achieved a surplus of 40.8 billion forints (EUR 120.9 million), extra-budgetary state funds a surplus of 25.7 billion forints (EUR 76.2 million), and social security funds a surplus of 23.9 billion forints (EUR 70.8 million).