Hungarian Government Warns of Severe Budget Deficit and an Oversized, Inefficient State

Minister Peter Magyar said the Hungarian budget was found in a "dramatically bad" condition after the hand‑over, accusing the previous administration of misleading the public about deficits – claiming a 3.7% shortfall that later rose to 5%, while the current accounting shows a 6.8% gap that could exceed 8% of GDP by 2026 even with EU funds. He highlighted critical infrastructure problems, noting that 91 bridges are in a dangerous state, and called for protecting public assets and ending certain state‑linked foundations.

Former central‑bank governor Bod Péter Ákos echoed the concerns, describing the current state model as "over‑sized and very inefficient" and warning that the deficit could reach 7‑8% of GDP. He said delayed investments in infrastructure, education and health have become a fiscal "debt" and that restructuring the state’s role is essential. He also noted that financial markets reacted positively to the recent change in government, potentially improving Hungary’s financing conditions.