Published On: Sat, Dec 26th, 2020

The government will spend $ 860 billion on improvements at the end of the year

 

The financing of economic protection, education and health developments, cultural activities, debt settlement of hospitals and support for several local initiatives are also included in the government’s end-of-year funding decision, according to which more than 860 billion forints will be spent on development, the Ministry of Finance informed MTI on Thursday.

Image source: koronavirus.gov.hu

It was emphasized that tackling the crisis caused by the epidemic requires the appropriate budgetary incentives provided by the disciplined management of recent years.
The Ministry of Finance continues to expect that as a result of the epidemic, gross domestic product will fall by 6.4 per cent for the whole of this year, while the deficit will be around nine per cent of GDP. They added that the goal of reducing the budget deficit and debt will remain in the coming years.
Many elements of the HUF 861.8 billion budget support at the end of the year are those that mean the pre-financing of a development or investment next year, they emphasized. Local governments and cities with county status can count on an additional source of about HUF 28.6 billion. In addition to modernizing the road network, nurseries, kindergartens and schools can be renewed in many places. The government is spending HUF 44.5 billion on debt financing for hospitals. In addition, the burden on several higher education institutions will be reduced by triggering ppp constructs, they listed.
It was emphasized that the HUF 4 billion intended for the partial compensation of the loss of income resulting from the failed bookings of accommodation service providers stands out among the sources for economic protection.
An important part of the announced development source is the funding of health, cultural and educational programs. In this way, money will go to the establishment of an ambulance station, investments related to the renovation of the capital’s hospitals for disinfection purposes, and the start of the Budapest Student City development, they wrote.
They added that the renovation of the Esterházy Castle in Fertőd and the Hédervár Castle could start, for example, with the funds intended for the strengthening of heritage protection and the national memory policy. A similar priority is to support church investments, talent development programs and developments in the Carpathian Basin, such as the reconstruction of St. Michael’s Church in Cluj-Napoca and the Franciscan monastery in Samosújvár and the renovation of the Zentai small synagogue building, the statement said.

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