Entries RSS Feed Share Send to Facebook Tweet This Accessible version

Left-wing concerns about public deficit

November 19th, 2021

A left-wing columnist questions government statements about the health of public finances – echoing alarm expressed by the President of the National Bank over high government expenditures.

In Népszava, Miklós Bonta dismisses optimistic declarations by the government about public finances as sheer propaganda. He criticises in particular a statement by Finance Minister Mihály Varga, who identified the successful financing of expenses over the Covid emergency and the recovery over the past year as proof that ‘the budget is in a good state’. Bonta retorts that the originally planned 1500 billion Forint budget deficit had to be increased by another 2500 billion this year, because the European Commission is holding back the payment of European recovery and resilience funds, claiming further guarantees they will be used properly. In addition, the government has issued bonds to the value of $4 billion, equalling 1300 billion forints, Bonta suggests with the aim of financing public spending ahead of next April’s elections. To prove his point that public finances are in a bad shape, Bonta quotes György Matolcsy, President of the National Bank, who wrote earlier this week that public debt amounts again to 80% of GDP and shows no sign of decreasing any time soon. (For Mr Matolcsy’s article on the subject, see Budapost, November 16.)

Tags: , , ,