Down Debt

Public debt down more than expected

New data shows government debt fell to 76.8% of GDP at the end of last year, lower than previous forecasts, while ESA’s budget deficit was 6.8%, against an earlier projection of 7.5%, Finance Minister Mihály Varga said on Friday. .

Varga said on Facebook that Hungary’s public debt was falling as the European Union average rose above 90%, and the European Commission predicted further debt increases in the bloc.

“Not only did we make a promise, but we also kept it,” Varga said.

The minister said the data justified the government’s approach to the pandemic crisis of support spending rather than austerity.

Hungary was the fastest in Europe to revive its economy, he said, giving it an early advantage in improving balance indicators.

Varga said the government’s policy of reducing Hungary’s exposure to foreign debt financing while increasing the role of Hungarian households in the bond market had proven “correct”.

The minister noted that the government had strengthened financial reserves at the end of last year, reducing the country’s financial vulnerability before the war in Ukraine broke out.

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“Hungary today is stronger and more resilient than ever,” Varga said.

featured image via János Mészáros/MTI