Citing increased spending, Hungary’s Finance Ministry raised the country’s 2023 budget deficit target from 3.9 percent to 5.2 percent of economic output on Tuesday. In 2022, the government deficit was 6.2 percent of gross domestic product (GDP). “The current precarious global scenario places an extraordinary burden on Hungary’s budget,” the ministry said.
Beyond the high costs associated with the country’s energy subsidy measures, it also said that the government will increase its defense spending to 2 percent of GDP this year. Moreover, Hungary seeks reimbursement from the European Commission for border defense expenses incurred in safeguarding the EU borders totaling 650b Hungarian forints (1,746,000,000 U.S. dollars), the ministry said, adding that if the Commission honored Hungary’s request, the deficit would be reduced by around 1 percent. —Xinhua
