BUDAPEST, June 15 (Xinhua) -- Hungarian parliament adopted the 2018 national budget on Thursday with 127 MPs voting in favor and 62 opposed.
The new budget anticipates a 4.3 percent economic growth and a deficit of 2.4 percent of the GDP, and estimates an inflation rate of 3 percent with a further decline in debt-to-GDP ratio.
The new budget targets revenue of 18,751.5 billion forints (1 U.S. dollar equals 274.36 forints), expenditures of 20,112.1 billion forints, leaving a deficit of 1,360.7 billion forints.
The small business tax will be reduced by one percent to 13 percent. Tax benefits for families with two children will rise. VAT rates on catering and internet service will be reduced to 5 percent from the current 18 percent.
The minimum wage will rise by 8 percent for unskilled workers and 12 percent for skilled ones.
The budget allocates 81 billion forints more for education, 287 billion forints more for pensions and social services, 83 billion forints more for the police and security, and 205 billion forints more for economic development.
The defence budget will increase by 77 billion forints to 427 billion forints, or more than 1 percent of GDP.
National Economy Minister Mihaly Varga said at a press conference that next year's budget will help enterprises to develop and strengthen their competitiveness. The budget also supports the strengthening of families, he added.
