Prime Minister Viktor Orbán is reversing his budget consolidation promises in order to start a wave of spending 18 months before the 2026 parliamentary election, the Bloomberg news agency reports, citing sources familiar with the
situation.
The planned change in fiscal policy may occur after the US presidential election in November and reviews of the country’s credit by major credit-rating agencies. A spokesman for the Ministry of Finance declined to comment when contacted by Bloomberg. When contacted by Portfolio later, the ministry called the report fake news.
According to the news agency, the government will treat public spending programs as apriority before the 2026 parliamentary elections, as Péter Magyar came from nowhere to win 30% of votes in this year’s European Par-
liamentary elections.
Bloomberg writes that the 2026 elections may be similar to the 2022 parliamentary competition in that even then, government spending contributed greatly to the success of Fidesz – although it did come at a price, such as the Ft 700 billion worth of tax refunds for families.
As for budget deficit targets, the government is expected to meet its 4.5% of GDP target this year, but after that it will no longer try to meet them unless investors and the market force a correction, the news agency reports.
Portfolio points out that the US presidential election is on November 5, and the results of the last credit rating review will be announced on December 6.