Hungary Finance Minister rejects 62.5 billion forints in spending requests

Hungarian Finance Minister András Kármán has implemented strict oversight on government spending, rejecting 18 major commitments totaling 62.5 billion forints. These rejected items include water management developments intended to combat drought, healthcare procurement, social institution food supplies, and disaster management upgrades.

Since mid-May, any procurement exceeding 100 million forints or commitments over 250 million forints require prior approval from the Finance Minister. This tightening follows a budget deficit that exceeded legal limits.

Despite these spending cuts, Kármán reported a 524 billion forint surplus for July, contributing to a reduction in the seven-month deficit from 91 percent to 68 percent of the annual target. While noting this improvement, the Minister cautioned that the positive figures are influenced by one-time effects and the legacy of previous fiscal management, emphasizing the ongoing need for sustainable public finances.