BUDAPEST: Hungary will stick to the 3.8% of gross domestic product (GDP) budget deficit target agreed with international lenders for this year and will cut expenditures to achieve it, Economy Minister Gyorgy Matolcsy said on Monday.
Matolcsy also told CNBC television that there were blunders in communication last week, but "it is blatant that Hungary is not Greece".
He said by the end of May, the deficit had reached 87% of the full-year target but pledged the government would keep the shortfall under control.
And, while he said there was no need for an austerity package, having a fiscal stimulus package was not an option now.
"We'll stick to our 3.8% budget deficit level for this year. It was agreed by the IMF and the EU and it was also agreed by the Hungarian government so there is no doubt about that. We'll stick to that figure," he said.
"On one hand it's clear cut there is no need to have an austerity plan. On the other hand, there is no option to have a fiscal stimulus package, so we'll have an action plan on the part of the new government, we'll cut budget expenditures (and) on the other hand we'll boost revenues." ' Reuters
Matolcsy also told CNBC television that there were blunders in communication last week, but "it is blatant that Hungary is not Greece".
He said by the end of May, the deficit had reached 87% of the full-year target but pledged the government would keep the shortfall under control.
And, while he said there was no need for an austerity package, having a fiscal stimulus package was not an option now.
"We'll stick to our 3.8% budget deficit level for this year. It was agreed by the IMF and the EU and it was also agreed by the Hungarian government so there is no doubt about that. We'll stick to that figure," he said.
"On one hand it's clear cut there is no need to have an austerity plan. On the other hand, there is no option to have a fiscal stimulus package, so we'll have an action plan on the part of the new government, we'll cut budget expenditures (and) on the other hand we'll boost revenues." ' Reuters
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