The Hungarian government’s budget for 2026 seeks to boost the economy and create jobs. It will focus on families, young people starting their lives, and pensioners. It will also include Europe’s largest family tax cut program, writes Magyar Nemzet.
Minister of National Economy Márton Nagy previously told press, “The budget shows that there is money for family tax cuts, for paying retirees’ 13th-month pensions, and more goes to education, more goes to healthcare, and public security.”
The government is allocating over HUF 5 trillion (€12 billion) for economic development next year. Of this, HUF 2.2 trillion will be covered from EU sources and approximately HUF 2.9 trillion from domestic.
The pillars of its New Economic Policy Action Plan are increasing the purchasing power of incomes, ensuring affordable housing, and supporting domestic small and medium-sized enterprises as part of the Sándor Demján program.
The previously announced 100 new factory program was expanded to 150 as well. From Jan. 1, 2025, employers have had the opportunity to provide support in the form of fringe benefits to their employees under the age of 35 in the form of a housing subsidy, which can be used to pay rent or repay a home loan. A 5 percent VAT rate will also apply to the sale of new residential properties until Dec. 31, 2026. In the case of properties whose building permits are issued or notified by the end of 2026, the preferential tax rate can be applied until the end of 2030.
Among the hundreds of investments to be launched, continued or completed next year, are the reconstruction of the Palace of Justice and the Ministry of Agriculture building on Kossuth Lajos Square; church renovation sub-program implemented as part of the Hungarian Village program; complex renovation of the Frankel Leó út premises of the Mercy Hospital of the Mercy Hospital of Buda; and the road renovation related to the Szeged industrial park.
Money will also go toward modernizing irrigation systems, as well as for developing vocational training centers and expressways.
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