Information about the 2023 Budget Adjustment Package is being released slowly, but we already have some crucial information. In June, officials presented the 2023 budget bill to parliament. This included special tax regulations and details about general spending cuts.
An Overview of What We Know
The presentation included information on special taxes, as well as additional taxes. The government also published spending cuts for 2022 and 2023.
The package measures were created by the Economic Development Minister, Márton Nagy. According to Nagy, the special taxes would be valued at 1,000 billion forints next year. This year is expected to have a surplus of over 800 billion forints.
The 2023 budget bill was submitted by Finance Minister Mihaly Varga. This estimates the benefits of the tax hikes and special tax increases.
The Breakdown of Tax Increases
We already mentioned the official estimates for the funds to be raised by the special tax increases. There will also be tax increases for:
- Company cars
- Public health products
- Simplified employment
The government estimates these will raise a combined 90 to 100 billion forints.
In addition to taxes to increase funds, there are measures to reduce expenditures. The central budget expenditure may drop by 581 billion forints this year. It could decrease another 500 billion forints in 2023. Notably, neither of these decreases showed up in the 2023 budget bill.
Between 2022 and 2023, the Hungarian government is postponing various investments. The details of which investments will be postponed have not been released. However, we know they will total about 1,150 billion forints.
Based on the information gathered by Portfolio, there will be three main items in the government’s budget adjustment package.
- The increase in revenue from the tax increases
- The ministry spending cuts of around 1,081 million forints
- The deferment of investments totaling 1,150 billion forints
Together, this would adjust the budget by 4,254 billion forints. According to the 2023 budget bill, these changes are part of efforts to return funding to the new funds for defense and reconstruction.
What to Expect in the Future
According to Portfolio, which broke the story, the government will likely have additional tax squeezes on certain sectors in 2023.
Hungary announced increased special taxes, as well as increased taxes, in several other areas. At the same time, the government announced cuts to investments and spending.
Did you find this article useful?
Subscribe to our newsletter for more!