The Parliament approved Hungary's central budget for 2022 on Tuesday

Of course, the left did not support the rise of the country this year either!

The Parliament approved Hungary's central budget for 2022 on Tuesday

👉The balance sheet:
Fidesz: 132 YES (The 133rd representative is Gábor Bányai, he is still recovering, therefore he did not vote)
️Left: 26 NO (40 other Members did not vote)

Mihály Varga's video message: Once again, Hungary has a budget with which all important areas can manage more money than a year earlier.

👉We previously wrote about the indicators used by the budgets by which Hungary embarked on the path of economic growth, wage increases and development.
️Budget 2015: "The budget of an impoverished society"
️Budget 2016: "The budget for falling behind"
️2017 budget: "A budget for the dehydrated economy"
️2018 budget: "The budget of the wealthy"
️2019 budget: "Budget for austerity"
️2020 budget: "Budget for backlog"
️2021 budget: "Budget for weakness"

In mid-May, Minister of Finance Mihály Varga called next year's budget the budget for the restart in the general debate on the bill, which focuses on the economic restart action plan after the coronavirus epidemic.

Budget funds are also used so that anyone who has lost their job can get it back or get a new job, and every entrepreneur who has had to close their business can restart or, if possible, further develop, he explained.

The Parliament approved the proposal with 132 yes and 26 no votes, in which the government with dynamic economic growth of 5.2 per cent, moderate inflation of 3 per cent, a deficit target of 5.9 per cent of GDP in line with the expected deficit reduction trend in the European Union countries, and It expects a safety margin of more than 0.4 percent of GDP.

In 2022, the total expenditure of the central government subsystem will be HUF 28,546.45 billion and the total revenue will be HUF 25,393.8 billion.

The deficit was set at HUF 3,152.6 billion.
There is HUF 233 billion in the budget as a reserve.
The government debt ratio is projected to reach 79.3 percent by the end of next year.

The government expects employment to grow by 1.1 per cent in 2022, net incomes expected to rise by 7.7 per cent, and household consumption to grow by 4.8 per cent.

The focus of the recovery remains on job creation, support for families with children and the protection of the elderly, as well as the development of key sectors for the Hungarian economy. In addition, climate protection goals and digitalisation play an important role in the rationale.

Like this year, next year’s budget will have two pillars. The amount of the economic restart fund in 2022 will exceed HUF 7,300 billion, which is 13 percent of next year's GDP. The health insurance and epidemic prevention fund exceeds HUF 3,600 billion.

The explanatory memorandum to the bill mentions the economic restart action plan as a continuation of last year's economic protection measures. This chapter of the budget includes, among others, HUF 160 billion for the reconstruction of the thirteenth monthly pension and HUF 68 billion for the pension premium.

This fund covers the salary increase of 208 billion forints for doctors working in outpatient and inpatient specialist care, as well as for doctors participating in primary care and their specialists, which started in 2021.

There will be 381 billion for housing subsidies next year.

The economic restart fund will cover Paks II. Zrt. Capital increase of HUF 270 billion, or expenses related to the Liget Budapest project from HUF 31 billion. This also includes the HUF 20 billion expenditure for the implementation of the national vaccine factory in Debrecen.

Instead of HUF 108 billion this year, HUF 105 billion will be slightly less for job-search benefits, and HUF 120 billion will be spent on public employment, ie the Start work program, after HUF 165 billion in 2021.

Young people under the age of 25 will be exempt from paying personal income tax (PIT) from 1 January; Instead of HUF 2,717 billion this year, HUF 2,866 billion is expected.

Measures affecting families and children include the fact that the minimum monthly amount of orphan's benefit of HUF 24,250 will increase to HUF 50,000 per month from next year. The increase also applies to benefits already paid; There is a budget of HUF 38 billion for this.

The amount of the home care fee for children will reach the amount of the minimum wage in 2022, and the basic monthly amount of the care fee will increase from HUF 41,335 in 2021 to HUF 43,405.

In the health insurance and epidemic prevention fund, the support for general practitioners and general medical care will increase from HUF 139 billion this year to HUF 244 billion. Funding for dental care will also increase significantly, from HUF 42 billion to HUF 82 billion this year.

The fund's revenues include retail tax, of which 64 billion is expected next year instead of 64 billion this year, and car tax, which will increase from HUF 87 billion in 2021 to more than HUF 90 billion.

From 1 July 2022, the employer's tax burden on wages will decrease by 2 percentage points. In order to reduce the administrative burden, the vocational training contribution will be phased out, and only HUF 68 billion of revenue is expected in the budget, instead of HUF 105 billion this year. The social contribution tax rate will also be reduced by 0.5 percentage points from mid-next year to 15 per cent; the government calculates a higher amount of this tax type from this type of tax next year, by HUF 2,454 billion.

Last year, the Parliament voted HUF 860 billion for local governments, which raised it to HUF 908 billion this spring. Based on the current decision, local governments will be able to manage HUF 873 billion in 2022; according to the government, municipal mandatory tasks are funded at the previous level. Next year, local governments will make a HUF 129.8 billion solidarity contribution.

The normative financing of human services and operating support for public education increases by HUF 32 billion to HUF 314 billion. The evolving higher education system shows that from 59 billion this year, there will be 177 billion in support for non-state higher education institutions next year.

In 2022, the expenditures of the pension insurance fund were set at HUF 4,169 billion, which is more than HUF 250 billion higher than this year.


Tags: Economy  Family  Living  Pensioners  Tax