Press Release: Hungarian budget deficit to be corrected in 2009 under new Convergence Programme; but rigorous implementation will be key to meeting targets

The new budgetary projections contained in the revised Hungarian Convergence Programme until 2009 set an appropriate path for the correction of the deficit, but implementation will be key in ensuring its success. The programme foresees a reduction of the budget deficit from an expected 10.1% of GDP this year to 3.2% of GDP in 2009. The programme also foresees public debt of 70.4% of GDP in 2009, putting an end to the steep increase that has been seen in the last few years. Given the size of the deficit, the Commission proposes that the Council extends the deadline for its correction to 2009, from 2008, in a new recommendation under Article 104.7 of the Treaty, and that the Government takes all the necessary measures to meet this new deadline and ensure a permanent correction within a comprehensive reform strategy.

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