Hungary’s New Budget Plan: A Fresh Start with EU Money

Hungary has secured a large sum from the European Union that could help lift its economy. The money will arrive in late 2026 and is expected to reduce the country’s debt and borrowing costs. Finance Minister Andras Karman said the new government will revise the 2026 budget to make it more realistic. He plans to submit this updated plan to parliament by the end of August. The country’s previous leader spent heavily before elections, leaving a budget deficit that could reach 6. 2% of GDP in 2026. The new administration began with a deficit estimated at 6. 8%.During negotiations, Hungary agreed to keep special corporate taxes that were introduced by the former prime minister. However, Karman said his ministry will cut ineffective tax breaks to increase revenue. The government also promised to make spending clearer and will set up an expert group to review long‑term budgeting and fiscal rules by late August. Overall, the EU funds are seen as a key boost for an economy that has stalled for three years. The new budget and tax reforms aim to stabilize finances and support growth.