Hungary’s government announced a budget deficit target of 7.5% of economic output for 2024 on Monday, as the country grapples with inherited fiscal imbalances, a severe drought, and an ongoing energy crisis.
The Finance Ministry outlined savings measures designed to reduce the fiscal shortfall by 700 billion forints ($2.25 billion) by the end of the year. However, a newly established crisis fund of 500 billion forints will absorb much of those savings to address the drought and energy challenges.
The government projects Hungary’s debt level will climb to 77.5% of gross domestic product (GDP) in 2024, up from previous levels. Despite the increase, the Finance Ministry expects the debt-to-GDP ratio to decline in the medium term under its fiscal plan.
The deficit target reflects the government’s prioritization of crisis response over immediate fiscal consolidation, as officials balance economic pressures against long-term stability goals.
