Hungary may carry out the largest budget adjustment in the EU in 2027 – is the 4.9 percent deficit target achievable?

The Hungarian government anticipates a 7.5% budget deficit for this year, aiming for a 4.9% target next year, which would represent a significant improvement. This would be the largest budget balance improvement in the EU according to the IMF. Key beneficiaries of the 2027 budget will be low-income workers and pensioners, with significant savings planned in ministries and state-owned companies. The deficit reduction is largely attributed to the phasing out of one-off pre-election expenditures. The government aims to achieve this while increasing pensions and social benefits. The 4.9% target exceeds the Maastricht criteria but is seen as achievable with disciplined fiscal management, potentially boosting investor confidence in Hungary's euro adoption plans. The IMF forecasts Hungary will show the second-largest budget improvement in the EU by 2027, despite the overall trend of worsening budgets in many member states.