The government submitted its budget draft to the Budget Council, which included furhter VAT cuts and wake hikes for education and the health sector.
The budget draft includes lowering the value added tax to 5% on milk, egg and poultry after cutting it on pork. This would create a HUF 35 billion shortfall in the budget
The tax levied on internet subscriptions and restaurant services will also be lowered to 5% from 18, Minister for National Economy Mihály Varga announced. The budget will be planned a zero deficit as for the operation of the state is concerned.
There will be around HUF 100 billion more funding for the health and eductaion sectors, which the government hopes to cover from additional revenues generated by faster growth. The Budget Council has ten days to evaluate the budget.
