2027 Budget to Recover a Sustainable Fiscal Policy

The Ministry of Finance has presented its medium-term economic and fiscal program, which includes budget cuts planned for the next three years.

As Finance Minister András Kármán put it, “the government’s aim for 2030 is clear: growth above 3% and a deficit below 3%” – more precisely: reducing the budget deficit to 2.8% by 2030, while setting a growth target of 3.1%.

"The credibility of the multi-year target is strengthened by the fact that we will achieve the larger share of the path that lies ahead early in the period," the ministry said in the program, adding that "we plan the recovery of a sustainable fiscal policy in a manner that implements the bigger part of the deficit reduction already in 2027, providing a buttress for later."

The narrowing deficit will be supported by a pickup in GDP growth in the period after 2027 as well as a decline in debt maintenance costs, relative to GDP, from 3.9% to 3.3% by 2030, the result of a "credible economic policy and yield convergence ahead of the adoption of the euro", the ministry statement pointed out. The program shows the general government deficit narrowing from an expected 7.5% of GDP in 2026 to 4.9% in 2027, 4.0% in 2028, 3.4% in 2029 and 2.8% — under the Maastricht criterion for euro adoption — in 2030.

Commenting on the 2027 budget proposal, Finance Minister András Kármán noted on social media that “this plan is about how we can achieve a predictable, stable financial situation while also getting the economy back on track for growth,” adding that Hungarian economic policy had been unpredictable in recent years and that the budget had been “tinkered with haphazardly through executive orders” during the Orbán administrations.

He is of the view that annual budgets can ensure sustainable fiscal management only if they fit within a longer-term, predictable economic policy vision and a sustainable economic model. “Moreover, in recent years, budget planning has completely fallen apart – not just in the medium term, but even within a single year. The deficit target was revised several times a year, and the budget was constantly tinkered with via executive orders throughout the year: for example, the 2026 budget was initially approved with a 3.7% deficit, but by the time of the change in government, the country was heading toward an 8.3% deficit. As a result, the Hungarian budget lost all credibility, and we all paid the price for this: the EU’s highest interest rates. That is now over. With the medium-term program, we are providing a clear anchor for Hungarian fiscal policy for the entire political cycle.”

The minister also detailed what sources the funds for all this will come from. “In addition to the HUF 700 billion saved this year, we will save an additional HUF 1,465 billion next year in government operations: by cutting overpriced procurements, unfavorable contracts, and unnecessary prestige projects. We will dismantle the NER in the economy: we will put an end to politically motivated contracts and subsidies, and make way for honest businesses that want to succeed on the strength of their own performance. And the EUR 16.4 billion euros in EU funds we have secured will be used to improve roads, railways, schools, and hospitals without placing a burden on the national budget,” he stated.

He added that for the government, responsible fiscal management is not only a goal but also a means to an end: it is the foundation of a functioning and humane Hungary. “Every forint we pay in interest today is money that is missing from healthcare, education, and families. If we put our finances in order, the interest burden will decrease, and more and more resources will be available for what truly matters. Today, we laid the groundwork for this,” the Finance Minister pointed out.