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Reducing Hungary’s main VAT rate by two percentage points to 25% would result in “many hundreds of billions of forints” of lost budget revenue, András Tállai, the deputy finance minister, said in an interview published in Friday’s issue of the daily Magyar Idők.
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The government has managed to resolve disputes with the European Commission on all but two funding issues, namely the construction of the M4 metro line and Hungary’s tendering system for EU funds.
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The International Monetary Fund (IMF) raised its projection for Hungary’s GDP growth this year to 4% in its fresh World Economic Outlook. The projection was raised from 3.8% in a forecast released in April, but is still under the government’s official target for 4.3% growth.
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Economic research company Pénzügykutató has revised its GDP growth forecast for this year to 4.4% from 3.9%, researcher Éva Várhegyi said.
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Industrial output in Hungary rose by an annual 6.2% in July, the Central Statistical Office (KSH) said in a first reading of data.
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The National Bank of Hungary (MNB) issued a reminder on Tuesday that old HUF 1,000 bills, which have been replaced by a new banknote design with enhanced security features, will be withdrawn from circulation on November 1, 2018.
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