Hungarian government budget for 2025 presented
The Hungarian government budget for 2025 was presented to the Parliament on 11 November, and is expected to be finalized by 20 December. It contains not only the amounts to be spent on various institutions, but also predictions and expectations for 2025.
Predictions for 2025
The 2025 government budget expects a 3.4% increase to Hungarian GDP. This would be a significant increase compared to this year’s 0.8%, but it is achievable according to analysts.
The deficit target decreases from 4.5% in 2024 to 3.7% in 2025, and it is expected to get below 3% in 2026. The national debt ration is expected to decrease from 73.2% at the end of 2024 to 72.6% by the end of 2025.
The inflation in Hungary is expected to be 3.2%.
Exports are expected to increase by 3.4%.
It is worth mentioning that calculations were made with the assumption that the exchange rate of the EUR will remain under HUF 400 (with HUF 397.5, to be precise). However, the exchange rate have been above HUF 400 since early October 2024.
Wages and consumption
The increase to the minimum wage has not been announced just yet. At the same time, the government budget predicts an 8.7% increase to the gross average monthly salary, which would mean a 5.3% net increase to real wages.
Spendings are expected to increase by 7.8% in 2025, which will also increase income from VAT, which usually covers about one fifth of the government budget.
Tax reductions
The government is working toward the elimination of special taxes on specific industries. The special tax on airlines is to be abolished in 2025, while the special tax on pharmaceutical manufacturers and telecommunication companies are to be decreased. The advertisement tax is to remain suspended for another year.
With the election of Donald Trump as the next president of the United States, the Hungarian government expect the renewal of negotiations on a new double taxation treaty, which would significantly reduce taxes for Hungarian tax residents who have income from the U.S.
About the government budget
In Hungary, the government budget is usually first proposed in March. This year the presentation got postponed due to the ongoing war in Ukraine and the U.S. presidential election. As a result of the late presentation, however, the 2025 government budget will probably need fewer corrections.
The next government budget (for 2026) is expected to be presented in March, just like in previous years.
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