2010.08.1809:59:00UTC+00Fiscal Council Sees Hungary's Deficit At 4.2% In 2011

Hungary's budget deficit would rise to 4.2% of gross domestic product next year from an estimated 4% this year, the country's Fiscal Council said Wednesday. The shortfall will probably ease to 3.4% of GDP in 2012.

The Hungarian government has set a budget deficit target of 3.8% of GDP for this year. The Council said the government needs strict fiscal control and the financial tax to meet this target.

In 2008, Hungary received a 20 billion euro financial aid from the International Monetary Fund and the European Union to avoid a default. In exchange, the country had pledged to cut its spending.

In July this year, the IMF and EU suspended a review of Hungary's economic programme to reduce budget deficits. The country's government had said it will not implement further austerity measures. Hungary is of the view that it will not require further IMF support.

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