Hungarian prime minister, Viktor Orban, plans an exemption from life income tax for two or more children mothersin a high risk attempt to reverse the weak numbers of the surveys just over a year of the crucial elections.
The exemptions will take effect in October for mothers with three children and in January for those who have twoSaid Orban in his annual speech on the state of the nation in Budapest on Saturday. Mothers with four or more children no longer pay income taxes in Hungary. The generous existing family subsidies have failed to stop the country’s demographic decline, where births fell to a historical minimum last year.
“It is a huge expense”Said Orban, without detailing the costs. At the same time, he said that the acceleration of economic growth this year could still allow government to reduce the budget deficit and debt levels.
Economy Minister Marton Nagy said The tax exemption for three children’s mothers affects 250,000 people and costs the budget US $ 441 million a yearas the official newspaper Magyar Nemzet reported Sunday.
The promises, which also include returns from the value added tax on basic foods for retirees, would take effect before the next parliamentary elections. The emerging Tisza party of the opposition leader Peter Magyar has taken advantage in the surveys of the Fidesz de Orban by focusing on the crisis of the cost of living in Hungary and corruption. The European Union has frozen billions of euros in financing for concerns about corruption.
The last promises recalled the enormous fiscal returns that Orban delivered to the Hungarians before the 2022 elections, which helped him get a fourth consecutive mandate. The result was that they ended up feeding inflation, which reached a maximum of more than 25% in early 2023, and almost caused a monetary crisis.
The new fiscal plans can be a threat to the recovery of the florin, which this year has fallen to a minimum of two years in front of the euro. The operators had already obtained some profits last week due to the worsening of confidence in Eastern Europe after an initial rebound in the first month of the second term of US President Donald Trump.
The measures will also test the government’s commitment to reduce the fiscal deficit, which is estimated that last year it was 4.8% of the gross domestic product.While Orban foresees vigorous growth this yearThe latest retail and industrial sales data suggest that the recovery of the recession will be slow.
Nagy said he hoped that the sectors promoted by domestic demand begin to grow again as soon as possible, such as construction, pharmaceutical products and, in part, logistics and food. “These will be the first areas with recovery potential“Nagy said.
Nagy did not give an estimate of the cost of fiscal exemption for two children’s mothers, or a schedule for the planned start of VAT reimbursements.
Orban, Trump’s ally, He also described the steps he must take to boost his right -wing agendaincluding legislation aimed at civil society groups that receive foreign financing. He also said that he supports the modification of the Constitution to say that a person is a man or woman, in response to what he calls gender ideology. Orban also advised the celebration of an annual pride parade in Budapest.
The prime minister, who has aligned controversially with Russia, also said that It might not support the integration of Ukraine to the EU if that means damaging Hungarian interests, particularly in agriculture.
