Péter Magyar presents 2027 budget with tax reductions and pension hikes

Magyar Péter presented the 2027 budget in Parliament, detailing a sweeping legislative package that introduces significant personal income tax reductions, doubled family allowances, and substantial pension hikes Telex. The prime minister stated that the government compiled the draft under the direction of the Ministry of Finance to rebuild the country and address past injustices Index.

Income Tax Drops for 2.5 Million People

The personal income tax on the minimum wage will be reduced to 9 percent starting in 2027, lowering taxes for everyone earning under a monthly income of 680,000 forints, which impacts 2.5 million people Telex. Family allowances will be increased starting in 2027, providing annual additions depending on the number of children Telex.

Minimum Pension Rises to 120,000 Forints

The minimum pension will be raised more than fourfold from 28,500 forints to 120,000 forints, while low pensions will also be raised on a tiered basis to assist 455,000 retirees 24. The Tisza government will keep the 13th-month pension and pay out the first week of the 14th-month pension Telex. Furthermore, a retired SZÉP card will be introduced step-by-step until 2030 for over 2.2 million pensioners, with the first installment delivered in 2027 to those with pensions under 500,000 forints Telex. Disability and rehabilitation benefits will increase by 10 percent, orphanage benefit minimums by 20 percent, and home nursing allowances by 50 percent Telex, 24.

Government Aims to Reduce Budget Deficit

Magyar asserted that the previous administration adopted the 2026 budget with a 3.7 percent deficit target, which would have climbed to 8.3 percent if the new government had not halted the squandering of public funds and worked to bring home European Union resources Portfolio. The prime minister added that the cabinet will send the 2027 budget to the Fiscal Council this week and submit the draft to Parliament at the end of the month Index.