BUDAPEST, April 17 (Xinhua) -- The Hungarian government has projected economic growth of 4.1 percent for 2026, with inflation expected to decline to 3.6 percent, down from 4.5 percent estimated this year, Economy Minister Marton Nagy announced Thursday at a press briefing after the latest cabinet meeting.
The government's proposed budget anticipates total expenditures of around 35 trillion forints (98 billion U.S. dollars), with revenues projected at approximately 34 trillion forints. This would result in a cash-flow deficit of around 4.1 trillion forints.
According to Nagy, family policy will remain the focus of next year's budget: in 2026, 4,800 billion forints will be allocated to family-related policies and 800 billion forints for utility subsidies. Pension payments will also receive 7,700 billion forints.
Nagy emphasized the necessity of a strong military for national defense, allocating 1,900 billion forints for army development. Meanwhile, economic development will receive 4,400 billion forints, and agriculture 1,300 billion forints.
The Hungarian government aims to decrease public debt to 72.3 percent of gross domestic product (GDP) in 2026, from an expected 73.1 percent this year. It also targets a budget deficit rate of 3.7 percent of GDP.
Hungary's GDP in current prices is forecast to reach 95 trillion forints in 2026. The final budget proposal should be submitted to parliament on May 2. (1 Hungarian forint = 0.0028 U.S. dollar) ■
