# Hungarian economic reform and 2027 budget projections > Live situation record from CLSTR: https://clstr.news/situations/hungarian-economic-reform-and-growth-strategy > Updated: 2026-10-20T03:48:50.000Z. Sources: 46. Developments: 3. The Hungarian government has formally presented its 2027 budget proposal, led by Prime Minister Péter Magyar and Finance Minister András Kármán. The plan focuses on supporting lower-income groups through measures such as doubling the family allowance, increasing the minimum pension, and implementing significant wage hikes for public sector workers in healthcare, social services, and law enforcement. Recent details specify a 677 billion forint allocation for public sector wage increases, affecting approximately 603,000 workers. Specific increases include 17% for healthcare workers, 17.8% for social sector employees, and 21.5% for educational support staff. Additionally, the administration intends to reduce the personal income tax rate for minimum wage earners to 9% and potentially raise the minimum pension to 120,000 forints. To fund these social initiatives and achieve the target of reducing the budget deficit from an estimated 7.5% of GDP in 2026 to 4.9% in 2027, the government has proposed several tax increases. These include a wealth tax on the richest citizens, higher taxes on energy and mining profits, advertising, and company cars, as well as an increased corporate tax of 15% for companies with annual revenues exceeding 180 billion forints. The administration has set a long-term goal of reducing the deficit to 2.8% by 2030. Economic forecasts for 2027 project a 2.4% growth rate and 3% inflation. Finance Minister Kármán noted that the budget aims to stabilize the economy to facilitate potential future entry into the eurozone, possibly by 2032. Newer details of the proposal include an allocation of 510 billion forints specifically for healthcare development, intended for new ambulances and diagnostic equipment. Furthermore, an energy modernization program has been introduced, aiming to assist 120,000 families in reducing energy costs by 2030 through subsidies for insulation and window replacements. ## Claims - The Hungarian government aims to reduce the budget deficit from approximately 7.5% of GDP in 2026 to 4.9% in 2027. (corroborated by 13 sources) - Hungary intends to bring its deficit below the 3% EU threshold by 2030. (corroborated by 9 sources) - The government projects 2.4% economic growth and 3% inflation for 2027. (corroborated by 8 sources) - The 2027 budget includes doubling the child allowance and increasing minimum pensions. (corroborated by 7 sources) - Péter Magyar cited Romania and France as examples of the consequences of excessive spending and corruption. (corroborated by 6 sources) - The European Commission projected Romania's deficit would reach 6.2% of GDP this year. (corroborated by 5 sources) - The Hungarian government plans to introduce a wealth tax and increase taxes for energy companies. (corroborated by 5 sources) - The budget allocates 510 billion forints for additional healthcare spending in 2027. (corroborated by 5 sources) - The government plans to increase the corporate tax rate to 15% for companies with annual revenues exceeding 180 billion forints. (corroborated by 4 sources) - The government intends to implement a home modernization program to help 120,000 families reduce energy costs by 2030. (corroborated by 4 sources) - The 2027 budget allocates 677 billion forints for public sector wage increases. (corroborated by 2 sources) - The minimum old-age pension will be increased to 120,000 forints starting January 1, 2027. (corroborated by 2 sources) ## Timeline ### 2026-10-20: Hungary presents 2027 budget plan focused on deficit reduction and social spending Prime Minister Péter Magyar unveiled Hungary's 2027 budget, targeting a 4.9% deficit and proposing significant wage hikes for public workers, doubled child allowances, and increased healthcare spending. 44 sources. https://clstr.news/cluster/hungary-debates-2027-budget-projections-and-economic-targets ### 2026-10-08: IMF calls for urgent economic reforms in Hungary The IMF has called for comprehensive fiscal and structural reforms in Hungary to address rising debt, a high budget deficit, and productivity gaps, suggesting potential changes to the tax system. 2 sources. https://clstr.news/cluster/imf-calls-for-urgent-economic-reforms-in-hungary ### 2026-10-07: Hungary targets 2.5% GDP growth through structural reforms Finance Minister András Kármán targets 2.5% GDP growth by next year, focusing on productivity gains and structural reforms to dismantle market-distorting economic practices in Hungary. 6 sources. https://clstr.news/cluster/hungary-targets-25-gdp-growth-through-structural-reforms --- Cite as: Hungarian economic reform and 2027 budget projections. CLSTR, https://clstr.news/situations/hungarian-economic-reform-and-growth-strategy