Hungary's government on Wednesday endorsed the 2010 budget bill which provides for a deficit target of 3.8pc of GDP. Talking at a press conference held about the budget bill, Prime Minister Gordon Bajnai said it was strict and frugal but contained extra financing in a few areas.
Due to the effects of the global economic crisis, Hungary was limited to a "narrow field" where the economy would contract by 7.5p cin 2009 and 2010 while the budget shortfall must be kept below 3.8pc of GDP next year, requiring restraint in spending. Next year's budget, however, contains tax cuts and, if the right conditions prevail, reduced tax for heat used used by district heating distributors, he said. Read more about the budget here. (Source: ITD Hungary)