BUDAPEST, Nov. 11 (Xinhua) -- The Hungarian government is considering raising its special bank levy to finance a new corporate tax-cut program, Hungary's Minister for National Economy Marton Nagy said Tuesday on social media.
The funds would also be used to maintain popular fixed-rate 3 percent loans for small and medium-sized enterprises (SMEs), Nagy added.
Hungary's banking sector remains highly profitable, the minister underlined. Under his proposal, from 2026, the levy on bank income exceeding 20 billion forints (approximately 60 million U.S. dollars) would increase from 20 percent to 30 percent, while income below that threshold would be taxed at 10 percent.
At the same time, the share of bank-tax obligations that can be settled through government bond purchases would be reduced from 50 to 30 percent. The government's budget-deficit target would be raised to 5 percent of GDP this year and maintained at that level in 2026.
Slower economic growth is weighing on budget revenues, Nagy said, although the government continues to meet its social and wage commitments. Possible savings within ministries are being identified to preserve fiscal balance.
Hungary's economy grew 0.6 percent year-on-year in the third quarter of 2025, according to seasonally and calendar-adjusted data. Although GDP stagnated compared to the previous quarter, in the first three quarters overall, the economy expanded by 0.2 percent year-on-year on an adjusted basis. (1 Hungarian forint = 0.0030 U.S. dollar) ■