Hungary’s 2026 budget will provide funding for key government support measures despite ongoing war-related risks and an unfavourable external economic environment, the Ministry for National Economy said in a statement on Friday.
The ministry said the budget would ensure continued support for families, pensioners and domestic small and medium-sized enterprises, while maintaining fiscal stability. Planned measures include fixed 3 per cent interest schemes such as the Home Start Programme and subsidized loans for SMEs, as well as wage increases in the public sector.
Additional policies include the continuation of 13th and 14th month pensions, full personal income tax exemptions for mothers with two or three children, and a doubling of family tax allowances. The government also plans to continue the Sándor Demján Programme aimed at supporting businesses.
The ministry said the government remains committed to wage increases, tax cuts and measures to counter rising prices, arguing that public funds should prioritize Hungarian households and businesses rather than external conflicts.
At the same time, fiscal data show a widening deficit. By the end of March, the central subsystem of the state budget recorded a deficit of 3,420.4 billion forints. Within this, the central budget posted a deficit of 3,242.6 billion forints, while separate state funds showed a surplus of 12.5 billion forints, and social security funds recorded a deficit of 190.3 billion forints.
Tax and contribution revenues increased by 8.1 per cent compared with the same period last year, indicating continued growth in government income.
However, expenditures have also risen significantly. Spending on pensions and pension-related benefits reached 2,506.1 billion forints by the end of March, including 13th and partial 14th month payments. Healthcare-related spending totalled 798.3 billion forints over the same period.
In March alone, the central subsystem recorded a deficit of 1,313.6 billion forints, compared with 831.2 billion forints in the same month of the previous year. The ministry attributed the increase largely to government housing initiatives and road construction programmes.
On the expenditure side, higher spending was recorded for programmes such as the Rural Home Renovation Programme and the Home Start Programme, including interest subsidies for loans, which appeared as a budget item for the first time in March 2026.
Investment-related spending also rose significantly, particularly in connection with the progress of road infrastructure projects. In addition, higher disbursements of EU-funded expenditures were recorded in March, with approximately 150 billion forints allocated primarily to agricultural subsidies for farmers.
The ministry said the budget framework reflects a balance between maintaining economic stability and continuing targeted support measures in a challenging international environment.
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