In a Facebook post on Sunday, Prime Minister Viktor Orbán shared the decision of the introduction of a ‘peace budget’ and plans to raise wages and family support. The prime minister, who had made these significant announcements at annual Kötcse gathering of the Hungarian conservative political and cultural elites, emphasized that the central focus of this budget is to ensure a 3–5 per cent economic growth rate for Hungary by 2025.
The Prime Minister remarked: ‘We have a plan of action. It has not yet been presented or officially announced, nor have we begun working on it politically. However, we often refer to it as the peace budget, and it is already in the desk drawer. Unless President Matolcsy forces our hand, we do not need to reveal it prematurely.’
He further explained that this peace budget or action plan is centred around boosting economic growth to the 3–5 per cent range by 2025. Orbán stressed the need to create a budget that not only preserves financial balance—crucial for credit rating agencies and the global financial market—but also achieves this level of growth.
‘This is the foundation of everything, and I believe we are capable of it,’ added Orbán.
Wage Hikes and Higher Tax Benefits for Families with Children on the Horizon
The Prime Minister highlighted the need for wages to continue to grow, and noted that employers and employees are currently engaged in dynamic negotiations regarding next year’s wages. ‘The government is attempting to stay out of the process, but it’s clear that the trade unions and employers will agree on a substantial wage increase, which the government will eventually approve. Obviously, they want to involve some of our funds, but that is secondary for now. What is evident is that a multi-year negotiation process is ongoing, focusing on significant minimum wage increases,’ he pointed out.
Orbán also noted that in some sectors, wage dynamics has already changed, such as in healthcare. He added that Hungary is currently undergoing the largest teacher wage increase in its history, which will continue next year.
In addition to wage increases, the Prime Minister stressed the importance of raising the value of family support, as inflation has eroded its purchasing power.
‘After 2020, when the troubles began with COVID-19, we couldn’t keep pace with inflation by increasing support amounts, but now we need to make up for that,’ he wrote. He said it was necessary to double the tax benefits after children by 2025, adding that Minister of Culture and Innovation Balázs Hankó has already developed plans in that regard.
Orbán also underscored that Minister Márton Nagy is making significant progress in launching a small business programme reminiscent of the former Széchenyi Plan: ‘For every forint you invest, we will add another forint. So, there’s a programme for small and medium-sized enterprises—not for the big companies—already in place,’ the post reads.
The Prime Minister highlighted that a coordinated economic management system is a prerequisite for such an economic action plan.
‘The more we listen to the central bank governor, the more it seems as though we are heading in the opposite direction, but that’s only an illusion. In reality, we are moving at a good pace towards a coordinated economic management system,’ he summarized.
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