Hungary’s government has set a 2026 budget deficit target of 7.5% of GDP, constrained by inherited fiscal challenges, a severe drought, and an energy crisis, the Finance Ministry said on Monday.
The ministry noted that cost-cutting measures implemented by Prime Minister Peter Magyar’s administration will reduce the fiscal shortfall by 700 billion forints ($2.25 billion) by year-end. However, a crisis fund of 500 billion forints will be established to address the drought and energy crisis, diverting much of the planned savings.
The country’s debt level is projected to climb to 77.5% of GDP in 2026, with a gradual decline expected in subsequent years under the medium-term fiscal plan.
