Hungary 2026 budget revisions

The Hungarian government has implemented significant revisions to its 2026 budget projections, driven primarily by slowing economic growth. Due to GDP growth forecasts being lowered to between 1.5 and 2 percent—falling short of the 3.5 percent threshold required to trigger a pension premium—the government has canceled the planned 24.3 billion forint premium. Furthermore, pensioners will not receive an inflation-based correction at year-end, as the government expects inflation to settle around 1.6 percent. The most significant upcoming change for retirees remains a January reform that increases the minimum pension from 28,500 forints to 120,000 forints.

In addition to pension adjustments, the government has significantly reduced revenue projections for other tax sectors. Expected revenue from the retail surcharge was lowered by over 65 billion HUF, a move analysts suggest may reflect the long-term instability of the tax following European Commission legal proceedings and EU recovery plan commitments. Corporate tax revenue projections were also cut by approximately 250 billion HUF, or 20 percent, due to the economic slowdown. To offset these losses, the government anticipates a revenue increase of nearly 200 billion HUF from the financial sector.