Three targets to revive Hungary’s economy

The Hungarian government’s economic policy is focusing on seven areas to mitigate the negative impact of the coronavirus pandemic and to put the economy on a fast growth trajectory, Márton Nagy, the Prime Minister’s chief advisor on economic policy, told the daily Világgazdaság that Prime Minister Viktor Orbán has set three main targets: restarting the economy after the coronavirus pandemic, protecting families, and developing rural areas, said Nagy, adding that all economic policy measures will have to be aligned with these goals.

The seven areas in focus are housing, demographics, extending the loan moratorium, stimulating investments (three main tools for stimulating private investments are non-refundable state grants, tax cuts, and capital, loan and guaranty programmes), increasing the financing capabilities of special state-owned financial institutions, using EU funds efficiently, and continuing the “outlay” strategy.

The simplification of taxes will continue as conditions for the small business tax (KIVA) will become even more favourable and Hungary’s corporate tax rate will continue being the lowest in the EU.

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