Editing Economy of Hungary (section)

=== Fiscal policy ===
[[File:Hungary bonds.webp|thumb|300px|right|Hungary bonds
{{legend-line|#00A2FF solid 3px|15 year}}
{{legend-line|#61D836 solid 3px|10 year}}
{{legend-line|#929292 solid 3px|1 year}}
{{legend-line|#F8BA00 solid 3px|3 month}}
{{see also|Inverted yield curve}}
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In Hungary, state revenue makes up 44% and expenditure makes up 45% of the GDP which is relatively high compared to other EU members.<ref name="8115a_gazdasa_gi_no_veke">{{cite web |url=http://www.kopint-tarki.hu/reform/rsz_munkaanyag.pdf |title=A gazdasági növekedés dinamizálásának lehetősége az államháztartási kiadások csökkentése mellett (Possibilities of Boosting Economic Growth while Decreasing Public Deficit) |date=10 March 2009 |publisher=Attila Bartha et al. |language=hu |access-date=18 January 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110721110524/http://www.kopint-tarki.hu/reform/rsz_munkaanyag.pdf |archive-date=21 July 2011}}</ref> This can be traced back to historical reasons such as [[socialist economic]] tradition as well as cultural characteristics that endorse paternalist behaviour on the state's part, meaning that people have a habitual reflex that make them call for state subsidies.<ref name="4811interview_with_adam">{{cite web|url=http://www.hetek.hu/belfold/200308/feszultsegnovelo_csokkentes|title=Interjú Gere Ádámmal, a Hayek Társaság elnökével (Interview with Adam Gere, Chairman of Hayek Institute)|publisher=hetek.hu |language=hu |year=2003|access-date=31 October 2009}}</ref> Some economists{{Who|date=July 2014}} dispute this point, claiming that expenditure ran up to today's critical amount from 2001, during two left-wing government cycles.<ref name="8115a_gazdasa_gi_no_veke"/>

Along with joining the EU the country undertook the task of joining the [[Eurozone]] as well. Therefore, the [[Maastricht criteria]] which forms the condition of joining the Eurozone acts as an authoritative guideline to Hungarian fiscal politics. Although there has been remarkable progress, recent years' statistics still point at significant discrepancies between the criteria and fiscal indices. The target date for adapting the Euro has not been fixed, either.

General government deficit has shown a drastic decline to −3.4% (2008) from −9.2% (2006).<ref name="3654_main_macroecon">{{cite web |url=http://www.p-m.hu/web%5C%5Chome.nsf/portalarticles/9CE71763C9C1ECB1C125727C0048022C/$File/Fobb%20makrogazdasagi_jelzoszamok%20_eves%20adatok.xls |title=Főbb makrogazdasági jelzőszámok (Main Macroeconomic Indicators) |publisher=Ministry of Finance |language=hu |format=xls |year=2009 |access-date=31 October 2009 |url-status=dead |archive-url=https://web.archive.org/web/20100215010653/http://www.p-m.hu/web/home.nsf/portalarticles/9CE71763C9C1ECB1C125727C0048022C/%24File/Fobb%20makrogazdasagi_jelzoszamok%20_eves%20adatok.xls |archive-date=15 February 2010}}</ref> According to an MNB forecast however, until 2011, the deficit will by a small margin fall short of the 3.0% criterion.<ref name="2834ecomoic_report">{{cite web|url=http://www.mnb.hu/Resource.aspx?ResourceID=mnbfile&resourcename=infl_jelentes_2009aug_pub20090826|title=Quarterly Report on Inflation|publisher=Hungarian National Bank|date=August 2009|access-date=31 October 2009|url-status=dead|archive-url=https://web.archive.org/web/20150919024107/http://www.mnb.hu/Resource.aspx?ResourceID=mnbfile&resourcename=infl_jelentes_2009aug_pub20090826|archive-date=19 September 2015}}</ref>

Another criterion that is found lacking is the ratio of gross government debt to GDP which, since 2005, exceeds the allowed 60%.<ref name="3847introducing_the_eur">{{cite web|url=http://europa.eu/legislation_summaries/economic_and_monetary_affairs/institutional_and_economic_framework/l25014_en.htm|title=Introducing the Euro: convergence criteria|publisher=Europa.eu|date=7 December 2006|access-date=31 October 2009}}</ref> According to an [[European System of Accounts|ESA95]] figure, in 2008 the ratio increased from 65.67% to 72.61%, which primarily results from the requisition of an IMF-arranged financial assistance package.<ref name="9345imf__eu__and_worl">{{cite web|url=http://www.imf.org/external/pubs/ft/survey/so/2008/car102808b.htm|title=IMF, EU, and World Bank Line Up $25 Billion for Hungary|publisher=IMF Survey Magazine|date=28 October 2008|access-date=31 October 2009}}</ref>

Hungary's balance of payments on its current account has been negative since 1995, around 6–8% in the 2000s<ref name="emenbe">{{cite web|url=http://www.mnb.hu/Resource.aspx?ResourceID=mnbfile&resourcename=hu0101_osszefoglalo|title=Összefoglaló makroökonómiai adatok (Summary of Macroeconomic Indicators)|format=xls|publisher=Hungarian National Bank|language=hu|year=2009|access-date=31 October 2009|url-status=dead|archive-url=https://web.archive.org/web/20100102220422/http://www.mnb.hu/Resource.aspx?ResourceID=mnbfile&resourcename=hu0101_osszefoglalo|archive-date=2 January 2010}}</ref> reaching a negative peak 8.5% in 2008.<ref name="emenbe"/><ref name="6342elemze_s_a_makrogazd">{{cite web |url=http://www.mkkt.hu/download/000/032/K%C3%B6lts%C3%A9gvet%C3%A9si%20Tan%C3%A1cs%20kiadv%C3%A1nya.pdf |title=Elemzés a makrogazdasági kilátásokról és a költségvetési kockázatokról (Essay on the Macroeconomic Outlook and Fiscal Risks) |author=Dánel Baksa |date=18 August 2009 |publisher=Budget Council |language=hu |access-date=18 January 2010 |display-authors=etal |url-status=dead |archive-url=https://web.archive.org/web/20091104213602/http://www.mkkt.hu/download/000/032/K%C3%B6lts%C3%A9gvet%C3%A9si%20Tan%C3%A1cs%20kiadv%C3%A1nya.pdf |archive-date=4 November 2009}}</ref>