Speaking at an interview, he confirmed that the cabinet will announce “comprehensive and deep” structural reforms at the end of February to be started in 2011 and completed in 2012.

More specifically, he said the Ft 360 billion labour market fund will be cut by Ft 100-120 billion, and Ft 100 billion will be taken from the Ft 340 billion drug subsidy fund.

All large budget expense items will be reviewed, Matolcsy said, adding that the annual Ft 150 billion subsidy for state railway company MÁV is excessive. This will also be the amount in 2011, but Ft 50 billion will be cut by reforming mass transport, Matolcsy added.

In addition, he continued, disability pensions will be revised, as 12% of pensions in Hungary are disability pensions, while the OECD average is 6%.

Regarding money taken from private pension funds, he said Ft 530 billion will be transferred to the budget for 2010 and Ft 250 billion in 2012 to cover the shortfall in the state pension system.

More generally, he said Hungary has embarked on a “non-traditional” economic policy. “Instead of austerity measures that are conventional around the world Hungary has set off on a growth-oriented and job-supporting path.

He asserted that the government has consolidated the budget in six months, not only for 2010 but also for 2011 and 2012. “This was achieved in an unorthodox and sometimes brutal way,” he acknowledged, adding “the bank tax and the three crisis taxes are tools that are not used generally but we had to use them”.

Source: Hungary Around the Clock.

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