A 3.5% Inflation Target

Published: 1 November 2004 y., Monday
The Hungarian government will recommend a 3.5% inflation target for the end of 2006, Finance Minister Tibor Draskovics announced. Draskovics said annual inflation will be 6.8%–6.9% for 2004, and will continue to slow in 2005 to a yearly 4.5%. National Bank (MNB) President Zsigmond Jбrai said the 3.5% target for 2006 is feasible provided fiscal policy remains strict. 52.6% of revenue in the 2005 budget carries medium or high risk, the State Audit Office (БSz) found. The office said the government’s target for GDP growth of 4% in 2005 is realistic, but not without risk, and added that the general government deficit target of 4.7% of GDP is riskier. The office also said the 2005 budget is not detailed enough in its description of expenditures related to public-private partnerships (PPPs). The government plans to present an alternative to an БSz proposal that would force it to make a new budget if the original’s targets are exceeded by 2.5%. The government proposes allowing a 5% overshoot of budget targets. Forcing the government to create a supplementary budget would mean the new budget has to be approved by Parliament. The government issued Ђ1 billion in eurobonds, State Debt Management Rt (БKK) announced, saying it would use the issue to refinance debts maturing in 2004. The terms of the issue are the best of all government-issued eurobonds, the БKK press release stated. They mature in seven years, and pay annual fixed interest of 3.625%. The government earmarked Ft 17 billion (Ђ69 million) for housing subsidies in next year’s budget. The budget includes a Ft 3.4 billion allocation for a new type of rent subsidy aimed at young people with few financial resources. Another Ft 4 billion is set aside for a fund providing state guarantees for housing loans.
Šaltinis: bbj.hu
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Focus on Energy and Finance in the Meeting of Nordic and Baltic Prime Ministers

In Brussels, Prime Minister Gediminas Kirkilas participated in the meeting of Nordic and Baltic (NB6) Prime Ministers which focused on the pressing topics on the agenda of the European Council: global finance crisis, energy, climate change, EU-Russia relations, and financial situation in Iceland. more »

The European Commission Will Develop an Electricity Grid Interconnection Plan between the Baltic States

Prime Minister Gediminas Kirkilas attended the working dinner with President of the European Commission José Manuel Barroso, Danish, Estonian, Finnish, Latvian, Polish Prime Ministers – Anders Fogh Rasmussen, Andrus Ansip, Matti Vanhanen, Ivars Godmanis, Donald Tusk – and Swedish Minister of Foreign Affairs Carl Bildt. more »

Commission sets out proposal to increase minimum protection for bank deposits to €100,000

The European Commission has put forward a revision of EU rules on deposit guarantee schemes that puts into action the commitments made by EU Finance Ministers on 7 October. more »

Bush vows action for econ crisis

The United States began releasing long-awaited details of its $700 billion rescue plan. more »

Australia guarantees deposits

Australia's Prime Minister announces plans for the government to guarantee bank deposits for the next three years. more »

Savers move to ethical banking?

Ethical bank, Triodos, says it is offering customers an alternative way to invest their funds. more »

G. Kirkilas: Latvia Supports Lithuanian Energy Security Initiatives

Energy security was the dominant theme during the meeting between Lithuanian Prime Minister Gediminas Kirkilas and Latvian Prime Minister Ivars Godmanis. more »

Opening up energy markets

The draft law would require utilities to separate – or unbundle – the distribution of electricity and gas from production. more »

MEPs advocate a holistic approach to eradicating poverty and a target minimum wage for all Member States

A holistic approach to eradicating poverty, which seeks to ensure adequate incomes, quality jobs and better access to social services, is advocated by the EP in an own-initiative report. more »

Property show defies credit crunch

Dubai showcases multi-billion dollar development projects at the annual Cityscape exhibition. more »