The restrictions are necessary because without further curtailments the state budget deficit target will be untenable. This is a great challenge to ministries which had to revise already their budget plans several times. The only possibility seems to be a wave of new dismissals and the postponement of renovation and maintenance expenses.
Last time it was in mid-June when the Ministry of Finance announced a plan to repress the state budget deficit now about HUF 837 billion. According to this the ministries may not touch the central emergency funds, HUF 125 billion, and the motorway constructions will be built by the help of more private investors which will result in ’saving’ HUF 40 billion.
The government has to report its measures to reduce the deficit to Brussels this week. Ferenc Pichler, spokesman of the Ministry of Finance said they had made the necessary steps requested by the European Union.
Translated by Péter Szentmihályi Szabó
origo.hu
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