Hungary’s budget deficit could widen to 6.8% this year, far beyond official targets, Prime Minister-designate Peter Magyar said on May 5, based on documents seen by his team, financial website Portfolio.hu writes.

In a post on social media, Magyar said the projected deficit would significantly overshoot both the government’s original 3.9% target and its later revised 5% forecast.

The cash-flow-based deficit in March swelled to HUF 1.3 trillion (€3.45bn), the highest monthly gap on record, lifting the budget shortfall to HUF 3.4 trillion, or 83% of the full-year target, the Economy Ministry announced two days before the election.

Magyar accused the outgoing cabinet of accelerating spending in its final weeks in office, including taking on new financial commitments and locking in additional obligations before handing over power. This was denied by the Prime Minister’s Office head, Gergely Gulyas.

In recent days, controversy surrounding the National Cultural Fund (NKA) has intensified. The fund, overseen by the Ministry of Culture and Innovation, allocated HUF17bn to public figures and organisations linked to Fidesz, as well as to a range of projects, including eating contests and composing the Champions League anthem by folk musicians for the May 30 final in Budapest. Some of the transfers took place after the election.

Magyar cautioned that last-minute spending by the outgoing cabinet could further strain the fiscal position inherited by the incoming administration and urged ministry officials not to take on any new obligations. Instead, he said, spending should be restricted to what is essential for the state’s basic operations until a new government is in place, warning that non-compliance could carry consequences beyond political responsibility.

The deficit path outlined by Peter Magyar’s team, if confirmed, would exceed market expectations. Analysts had already anticipated substantial fiscal slippage this year, with most forecasts in the 5.5-6% range.

A deficit of this magnitude would imply a significantly larger fiscal adjustment than previously assumed, raising the stakes for the incoming administration as it seeks to stabilise Hungary’s public finances while maintaining economic growth.

Some analysts have criticised Tisza for making pledges during the transition, such as reducing the personal income tax rate from 15% to 9% on the minimum wage and for those earning below the median wage. Istvan Kapitany, the future Economy and Energy Minister, however, did not set a specific date for the measure, which would presumably come into effect from 2027.

Magyar pledged that the new government would swiftly restore fiscal discipline by reviewing spending, contracts and state-owned enterprises to curb waste and improve efficiency. Earlier, he said that Tisza would conduct a comprehensive budget review and submit a revised version within the first 100 days.