They are doubling the family tax allowance – Not just anyone announced the government’s new economic plans

Prime Minister’s Cabinet Office of his performance its most important features:

• In Hungary, there is a two-tier, two-step minimum wage or guaranteed lower income system. One of the minimum wage, the other is the guaranteed minimum wage. With the guaranteed minimum wage, we are already at the bottom of the middle ground of Europe, so the next important goal is to close the two minimum wages.
• You need it we should close the minimum wage to the guaranteed minimum wagewhich of course requires an agreement, with an explanation between the trade unions, ie the workers and the employers, which the government can support.
• They always say that we make a family policy, we support families, because we want to significantly improve the demographic indicators here. Of course, this is also a goal. But I will add that this is not the main goal.
• The main goal is that those who raise children do not become poor. Supporting families raising children is the real goal. Then they decide whether they want to have more children or not.
• Thanks to the family support measures in Hungary, working married couples who raise children are better off financially. To this, of course, it must be added that a child naturally means more burdens and costs.
• This does not mean that the financial situation of those families with children is significantly better than the situation of those who are not raising children, but it shows the change that has taken place, which the government implemented. For families raising children, the biggest part of this is the child tax allowance.

• After the children preserving and increasing the value of the tax benefit one of the most important tasks in the next two years.
• The goal: 2026-ra the amount of the tax allowance for children will be doubled in all sectors. This is not a new ad, about that we wrote here before.
• Demography: no favorable changes appeared in the last two years, and here the minister predicted the birth numbers year after year in a table. From 2021, we will still see better values ​​above the EU average.

• Energy sovereignty, resource reduction: here sovereign economic policy must make sovereign decisions. I think the most powerful aspect of this is the cost reduction. We are talking about the most favorable average energy prices for Hungary.
• For 85 percent of Hungarian families, changing the utility reduction did not bring any changes.
• After that, he turned to the risks surrounding the Hungarian economy (pandemic, war, energy crisis, wartime inflation). He believed that they managed to manage the effects of the epidemic and reduce inflation.
• That what are the opportunities in the Hungarian economy in the next periodI think it is determined by two things: interest rate changes and peace.
• The central bank can lower interest rates cautiously but continuously. This means that loans in Hungary can start already towards the end of this year or at the beginning of next year.
• By definition, I understand the central bank’s warning. Politics would always urge the central bank, but the central bank is right. In his sovereign way, he carefully makes the necessary decisions, but he makes them continuously and this improves the prospects for the Hungarian economy.
• But, according to Antal Rogan, this alone is not enough, the success would be very good if we could get to the point where there is peace.
• If there is peace, a completely different budget can be drawn up. And the plans for a peace budget are already in the desk drawer.
• Peace budget: doubling family tax benefits, increasing subsidies for home building, support for small businesses, raising the minimum wage to the guaranteed minimum wage, loans for skilled workers.
• Here he was talking not only about 2025, but about 2026, depending on how the war situation develops.
• The home building subsidies we have already built them, we are keeping them at an elevated level, and if we can, we will build them even more.
• I am convinced of that now large investments should not be supported. Instead of supporting large investments, we must now focus on small businesses. In loans, support programs and everything.

We are investigating another thing, that is opportunities for young people to start their lives you can improve more. There are already student loans in Hungary, which is a bit unfair in a certain way, because we give money to those who go to university. But we do not give extra support to those who finish school anyway and go to work.

• He believed that the sovereign’s economic policy had yielded results. According to him, this was still called unorthodox in the early 2010s.

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