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Hungary Unveils Fresh Austerity Measures

10/17/2012 7:59 AM ET

Hungary's Economy Minister Gyorgy Matolcsy on Wednesday announced new fiscal consolidation measures worth HUF 367 billion to bring the budget deficit below 3 percent of gross domestic product in 2013.

He said they will not halve bank tax next year. Moreover, the government will raise financial transactions tax to 0.2 percent from 0.1 percent.

The government earlier this month unveiled budget cuts worth EUR 397 billion. But the government was forced to take more steps as the nation risks losing EU funding if it fails to reduce the deficit to 3 percent of GDP.

Other measures include a cut in local business tax benefits and higher taxes on employee benefits.

by RTT Staff Writer

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