Bloomberg News

Hungary Budget Institutions to Delay Contract Payments to 2012

October 03, 2011

Oct. 3 (Bloomberg) -- The Hungarian government has ordered budgetary institutions to set aside 577 billion forint ($2.6 billion) in savings this year by delaying some contractual payment obligations to 2012, an Economy Ministry official said.

Ministries and other institutions controlled by the government must make 577 billion forint in savings by the end of the year to ensure that the budget deficit is kept in check, Tibor Haag, a department head at the ministry told a parliamentary committee today.

“We encourage institutions to renegotiate some of their contracts to delay the payment to 2012 and also to push back the start of some projects to next year,” Haag said.

The cabinet has already set aside 250 billion forint in budget reserves this year and ordered a freeze of public procurement in September to keep the budget deficit below 3 percent of GDP.

--Editors: Chris Peterson, Alan Purkiss

To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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