FIDESZ Economic Expert Slams the Government’s Budget Plans

At a press conference in Budapest on Monday, André Palóc, a FIDESZ member of the National Assembly, described the TISZA government’s budget plans for next year as anti-youth, anti-business, anti-worker, anti-women, and anti-retirees.

The opposition politician noted that although the government has not yet submitted the bill on the 2027 budget to Parliament, based on statements made so far by the prime minister and the finance minister, they have identified a total of 18 tax measures and tax increases.

The representative called the government’s plans anti-youth, noting that instead of the 3-percent fixed-rate Home Start (Otthon Start) loan introduced by the previous government, the TISZA cabinet would introduce the “Wekerle Plus” program, under which loans would be available at a 5-percent interest rate.

He pointed out that for a 50 million forint (136,180 euros; 1 euro=367 forints) loan with a 25-year term, the monthly payment would increase from 237,000 to 292,000 forints, representing an additional 16 million forints in total loan costs.

According to André Palóc, the proposals outlined by the government are also anti-job because they include a planned additional burden of nearly 1,000 billion forints—that is how much would be taken from businesses. He added that a two-thirds increase in the corporate tax rate could affect 700,000 jobs.

Citing data from the Hungarian Central Statistical Office (KSH) and GKI, as well as news reports on factory closures that have been made public so far, he pointed out that investment has fallen significantly, the construction industry has ground to a halt, and 14 percent of businesses plan to reduce their workforce over the next three months.

According to the FIDESZ representative, the government’s budget plan is also anti-mother and anti-woman because it revokes the personal income tax exemption for mothers between the ages of 40 and 50 with two children—an exemption the previous cabinet had planned to introduce starting in 2027. This measure currently affects 110,000–120,000 women, and over the next three years, approximately 420,000–460,000 women will not receive their personal income tax exemption as a result of TISZA’s decision, he emphasized.

He justified his claim that the budget is hostile to workers and retirees by stating: the government has deceived minimum-wage earners, and workers in numerous sectors—including police officers and those in the cultural sector—will not receive the previously promised pay raise next year, while retirees will not be given the next installment of their 14th-month pension.

He criticized the phasing out of the markup cap and the protected fuel price, arguing that this will cause a significant increase in costs, primarily for families and retirees.

Via MTI; Featured photo: MTI/Szigetváry Zsolt

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