The Government's economic policy appears to be taking shape

András Kármán, the Minister of Finance, made important announcements during his hearing before the Parliament’s Finance and Budget Committee in May 2026. The Ministry of Finance will be responsible for budgetary and tax policy matters; thus, its sole responsibility will be to ensure fiscal stability and responsible financial management. Economic development issues will be transferred to the Ministry of Economy and Energy.

Kármán said that within a few weeks, the results of the review of the annual budget will be made public. Based on those results, a supplementary budget will be adopted by the end of summer, as a revision of the annual budget, and the 2027 budget will be submitted in October. As of this year, the annual budget will be prepared in the fall, with larger reserves than before, and the new Government will make four-year budget plans. The minister also said that the new macroeconomic scenario and the new budget deficit target are expected to be set by the end of July. He also noted that the drawdown of resources from EU funds (Recovery and Resilience Facility loans and Structural and Cohesion Funds) would be promoted through a capital increase at the Hungarian Development Bank (abbreviated in Hungarian as "MFB") and the use of special-purpose project companies.

He also outlined the Government’s goal of achieving a deficit below three percent and a sustainably declining government debt by 2030. They also aim to adopt the euro by 2030. The new Government intends to create the necessary economic conditions for this by, among other things, supporting domestic SMEs, investing in human capital (education, healthcare), and increasing productivity. They will also conduct professional and public consultations on the introduction of the euro, but meeting the criteria remains the goal regardless. The Government also plans to prioritize ensuring the transparency of private equity funds (i.e. making the identities of their actual owners public) and to review the operation of private equity funds.

The tax system will also be overhauled, though not immediately: sectoral levies will remain in place for a while, but the itemised tax for small taxpayers (abbreviated in Hungarian as "KATA") will be reformed, although the minister did not specify the exact conditions under which this will happen. The system of tax benefits will also be reviewed and simplified. According to the minister, since sectoral levies distort the market, they will be phased out gradually. Tax benefits related to trust management will be eliminated, and corporate tax benefits will also be reviewed.

According to the plans, 1% wealth tax would be introduced for the wealthiest segment, starting at a threshold of HUF 1 billion (EUR 2.8 million approximately). The National Tax and Customs Administration (abbreviated in Hungarian as "NAV") will prepare a draft tax assessment for individuals with assets totalling HUF 1 billion, using the existing databases.

A tax credit would also be introduced, with the aim of ensuring that the less a person earns, the lower their personal income tax will be. According to preliminary information from the Government, the tax of those earning the minimum wage will be their incomes' 9%, which means a minimum-wage earner will have HUF 240,000 more to spend each year. The VAT rate is also expected to be reduced on products that account for a significant portion of low-income households' spending.

The minister confirmed that the new Government will maintain the personal income tax exemption for mothers, the 13th and 14th month pension payments, and housing benefits. In addition, family allowances will be doubled.