Budapest: Hungary's new government has announced its commitment to maintaining a 7.5% budget deficit target despite facing significant challenges from adverse weather conditions and rising energy costs. The Finance Ministry confirmed on Monday that the target remains unchanged for this year.
According to Emirates News Agency, the ministry highlighted the difficulties posed by a severe summer drought and an ongoing energy crisis, which have hindered efforts to improve the fiscal situation. These challenges come as the new government, which took office following the end of Viktor Orban's 16-year rule, attempts to stabilize the nation's finances.
The Finance Ministry acknowledged that without the budgetary measures implemented after the April elections, the deficit target could have been even higher. The ministry stated, "The economic situation we inherited and the costs of the drought and the energy crisis make it impossible to cut the target any further," underscoring the complexities involved in managing the country's financial health amidst external pressures.