Hungary's 2026 budget deficit could reach 8.3% of GDP

Hungary’s 2026 state budget was originally approved with a 3.7 % of GDP deficit. An internal review by the new government estimated that, without any corrective measures, the shortfall would rise to 6.8 % and, after accounting for unbudgeted spending of about HUF 400 billion, to 7.2 %. The finance ministry now targets a 7.5 % deficit after planned measures, while the EU Recovery and Resilience Facility (RRF) grants are expected to cut the gap by roughly 0.5 % of GDP. Kármán András said, “If the Fidesz government had remained in power, the deficit would be 8.3 % of GDP.” Major deficit‑raising items include a proposed 14‑month pension, home‑building support for public‑sector workers, a 35‑year highway concession, the Budapest‑Belgrade railway project, and repayments of CO₂‑quota and mining levies. The ministry will amend the 2026 budget by the end of August and submit a revised target, and a 2027 deficit of about 6.1 % is projected if no further actions are taken.