Hungary Budget ‘Hole’ After 2012 Calls for Austerity
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Hungary must cut spending because a plan to impose temporary taxes and retain pension-fund savings will fail to control the fiscal deficit from 2013 and risk long-term funding, Morgan Stanley and UniCredit SpA said.
The end of special corporate taxes, designed to bring down the deficit through 2012, and the introduction of a flat personal-income tax rate will create a shortfall in 2013 of about 700 billion forint ($3.6 billion), or 2.5 percent of gross domestic product, estimates from the two banks show.