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Hungary’s government is ploughing HUF 6.17 trillion, the equivalent of over 6% of GDP, into economic development, “because economic recovery requires sufficient financial resources”, National Economy Minister Márton Nagy said.
At a conference organised by his ministry, the Hungarian Chamber of Commerce and Industry (MKIK) and the Hungarian Economic Development Agency in Budapest on Tuesday, he said that “The economy must function for the financial balance to be maintained, which is why money must be spent on the economy.”
“Economic growth will generate tax revenue for the budget which can be used for expenditures on healthcare, culture, education or defence,” he added.
Nagy said close to HUF 2.54 tln had been earmarked for business development in 2026.
He added that two-thirds of the funding would go to SMEs and 70% to Hungarian-owned businesses.
“Whoever says the economy isn’t a priority for the government is lying,” Nagy said.
He noted that the number of local SMEs capable of exporting had risen from 3,000 to 15,000 over the past 16 years, but the productivity gap between SMEs and big companies was still large.
Nagy acknowledged the role played by MKIK in the distribution of economic development funding.
He highlighted government measures to spur corporate lending, adding that without the HUF 330 bln in interest subsidies for 3% Széchenyi Card loans, companies would face rates of around 9%.
MKIK head Elek Nagy said Hungary’s economy needed to make the switch from extensive to intensive growth.