Hungary’s 2011 budget has reportedly been heavily criticized by the IMF whose delegates left the goulash capital allegedly claiming that the new budget (due to go before parliament soon), is full of structural weaknesses (whatever that means -Ed). Experts say that the markets will most likely react negatively to these weaknesses and give concern to medium term investments and sustainability in Hungary.

Reportedly the questionable Royal Bank of Scotland (questionable because in 2010 the bank was bailed out by the British Government – using tax-payers’ money – to save it from going bust) also criticized the Hungarian Government’s shortfalls, claiming that it was “unimpressed.” The bank was reportedly sceptical about Hungary’s 2011 fiscal targets based on planned tax reductions.

The On the contrary the Hungarian government has suggested its commitment to its decision to improve the budget deficit “its own way” and without the “interference” of the IMF.

By Tamas S. Kiss, published on XpatLoop.com with the permission of BudapestReport.com