Ferenc Gyurcsany, Hungary's prime minister, has vowed to slash the country's budget deficit by raising taxes and fighting waste in the public sector. Corporate tax will be raised from 16 per cent to 20 per cent. Income tax, value added tax and social security contributions for employers and employees will also rise. The austerity package is a 2½-year plan to tackle a budget deficit forecast to reach 9.5 per cent of gross domestic product this year, overshooting the 4.7 per cent target. Mr Gyurcsany, who launched the plan on Saturday, told the Financial Times that tax increases were a short-term measure that would be followed by more important efforts to rein in public spending that had spun out of control, partly as a result of election spending promises. "The steps for this year are what I would call first aid," he said. "We are not just cutting expenses but we are trying to reconstruct the system itself."
Corporate tax will be raised from 16 per cent to 20 per cent. Income tax, value added tax and social security contributions for employers and employees will also rise.
The austerity package is a 2½-year plan to tackle a budget deficit forecast to reach 9.5 per cent of gross domestic product this year, overshooting the 4.7 per cent target.
Mr Gyurcsany, who launched the plan on Saturday, told the Financial Times that tax increases were a short-term measure that would be followed by more important efforts to rein in public spending that had spun out of control, partly as a result of election spending promises.
"The steps for this year are what I would call first aid," he said. "We are not just cutting expenses but we are trying to reconstruct the system itself."
Can you tell me what the current status of the health reforms is? It might be useful for some research I am doing. So as not to tax you too much, I'll just ask? Are there concrete proposals yet? I'd heard that a multi-insurance setup was proposed, but is it looking likely? Have any other policies been outlined?
I may do a write-up for you during the week. *Lunatic*, n. One whose delusions are out of fashion.
