Hungary’s 2026 state budget has been passed by Parliament with 133 votes in favour and 47 against, the Ministry for National Economy (NGM) announced on Wednesday. Framed as a ‘pro-family and anti-war’ budget, the government emphasized that the country’s financial resources will support Hungarian households—especially families with children and pensioners—rather than foreign aid to Ukraine.
The budget sets aside funds to double the family tax allowance, extend personal income tax exemptions for mothers with multiple children, and ensure the continued payment of the 13th-month pension. Over 4,800 billion forints will be spent on family policy goals, with an additional 800 billion allocated for utility subsidies, bringing the total to 5,600 billion forints in family-related spending.
In line with its longstanding approach since 2010, the government stressed its commitment to reducing both the deficit and public debt—even during election years. The 2026 deficit target is set at 3.7 per cent, with the primary balance (excluding interest payments) expected to be neutral.
The NGM described the 2026 budget as enabling the implementation of Europe’s largest tax cut programme. Starting next year, mothers under 40 with two children will join large families in enjoying full income tax exemptions. Additionally, the government will pay 800 billion forints in interest on retail government bonds, benefiting household savings.
The plan also includes wage hikes, with the minimum wage rising by 13 per cent in January 2026. Public sector workers and members of law enforcement and the military will receive bonuses and pay raises, including a six-month ‘weapon bonus’ for defence employees.
‘Forecasting 4.1 per cent GDP growth and 3.6 per cent inflation for 2026, the budget maintains fiscal discipline and supports growth’
Pensions remain protected, with 7,700 billion forints allocated for pension and pension-like benefits, securing the purchasing power of retirees and the 13th-month payment. Health spending will increase to 3,919 billion forints—280 billion more than in 2025—while preventive and curative care funding will also rise.
The budget sets aside 5,050 billion forints for economic development, drawn from 2,200 billion in EU funds and 2,850 billion in domestic resources. It supports Hungary’s 21-point New Economic Policy Action Plan, which aims to boost purchasing power, affordable housing, and small business growth through the Demján Sándor Programme.
Defence spending will remain at 2 per cent of GDP, fulfilling Hungary’s NATO obligations.
Forecasting 4.1 per cent GDP growth and 3.6 per cent inflation for 2026, the budget maintains fiscal discipline and supports growth. During the parliamentary phase, balance-neutral amendments provided extra resources for healthcare, culture, religion, and sports.
The NGM concluded that the 2026 budget reflects the government’s consistent, value-based policy since 2010: putting Hungarian families and national interests first.
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