The Hungarian press is speculating that earlier government plans to reduce taxes in Hungary have now been postponed. Moreover, the new government plans higher taxes in order to create a lasting equilibrium in public finance. Government program would be submitted to the Parliament today and therefore certain elements of the austerity measures would likely be discussed. However, details of the program are due only on June 10.
London-based macro analysts, after visiting the Finance Ministry and the Central Bank, told Portfolio.hu that the new PM and its government seems to be well committed to the reforms. The local press also reports that the PM sees the necessity to cut the annual deficit by HUF 350-400bn, rather than HUF 300-350bn as announced earlier. On the back of these, we might see some speculation on the market today on a positive development.