The International Monetary Fund predicted Hungary will overshoot its budget deficit targets this year and in 2013.
The shortfall may be 3 percent of gross domestic product in 2012 and 3.4 percent next year, according to the IMF’s Fiscal Monitor report, published today. The government is targeting a 2.5 percent budget gap this year and 2.2 percent in 2013.
The European Union last month partially froze Hungary’s infrastructure-development aid from 2013, giving the country until June 22 to take “effective” action to cut its budget deficit and have the sanction lifted. The shortfall reached 90 percent of the government’s annual target in the first quarter.
The IMF said its forecasts are based on existing legislated measures as well as the fiscal-policy plans announced by the government through the end of last year.
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