The government will disclose the main points of the 2011 budget in October, which will ease uncertainty, Karman underlined.

The government will launch the 16% flat rate from January 2013, as part of the family tax system. On tax credits, Karman said the current system is rather generous, as the minimum wage is not subject to income tax.

The government will not entirely abolish tax credits, but will narrow them to helping lower-income households.

Socialist politicians were quick to blame Fidesz for breaking its election promise, which promised a “radical and immediate” cut in personal income tax.

The first draft of the budget chapters to be sent to ministries has not yet been prepared because the government has been tied up with getting this years budget in order, Economy Minister Gyorgy Matolcsy said in a written answer to an MP's question.

The Socialists have tried to push Fidesz to disclose the first draft of the budget numbers before the October 3 local government elections, but the government is in no rush to do that, Index.hu comments.

Ministries will have their first look at the draft figures on October 4, the website reported. The Economy Ministry will put the first draft of the budget before the cabinet by October 15 and before Parliament by October 30. The final vote on the budget will come on December 23 at the earliest.

The government is working to keep the budget deficit at 3.8% of GDP this year and at 2.8% in 2011, Matolcsy reiterated."

Source: Hungary Around the Clock.

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