Gov’t plans to delay VAT refunds to increase 2012 budget spending; Fiscal Council warns move to jeopardize deficit goal

Economy Minister György Matolcsy has submitted a last-minute modification to the proposed amendment of Hungary’s 2012 budget on Tuesday. The government is apparently ignoring the admonishments of the Fiscal Council. Should Parliament approve a significantly amended 2012 budget on Thursday, Hungary’s aspirations to meet the 2.5% accrual-based deficit target will be jeopardized.