Tisza Party Unveils Sweeping Economic Plan Ahead of Hungarian Elections
Hungary’s Tisza Party has detailed a comprehensive economic program encompassing significant changes to the tax system, social benefits, and energy policy, as the country approaches upcoming elections. The proposals, outlined in hundreds of pages of documents, signal a sharply left-wing economic shift, according to analyses of the plan.
Tax System Overhaul
A central component of the Tisza Party’s platform is a restructuring of the tax system. The party proposes reducing the tax burden on lower earners, specifically those earning below the median wage of 625,000 Hungarian Forints per month. According to the plan, individuals earning below this threshold would see a reduction in their personal income tax (szja) obligations. Specifically, those earning 420,000 Forints would save 15,000 Forints monthly, while those earning 500,000 Forints would save 10,000 Forints, and those earning 625,000 Forints would save 5,000 Forints per month.
For those earning above the median wage, the personal income tax rate would remain at 15%. The party also proposes introducing a 1% wealth tax on assets exceeding one billion Forints. The value-added tax (VAT) on prescription drugs would be reduced to 0%, and on firewood and healthy foods to 5%.
The Tisza Party aims to reinstate a simplified tax system (kata) for small businesses, making it more widely accessible. A tax credit system would also be implemented to further reduce the tax burden on minimum wage earners, providing an additional 20,000 Forints per month, or 240,000 Forints annually.
Budgetary Goals and Euro Adoption
The party has set a goal of meeting the Maastricht criteria – a budget deficit below 3%, a decreasing national debt-to-GDP ratio, low inflation and interest rates – by 2030. They believe strengthening investor confidence will reduce the costs of servicing the national debt. A key ambition is to prepare Hungary for the adoption of the Euro, with plans for professional and public consultations to determine the appropriate timing.
Energy Policy
The Tisza Party intends to maintain and expand the existing utility cost reduction program (rezsicsökkentés) on a social basis, adjusting consumption limits based on weather conditions. The VAT on firewood would be reduced to 5%, and the social firewood allowance would be doubled and extended to settlements with populations over 5,000. The party also aims to ensure affordable and competitive energy prices for Hungarian businesses by increasing competition and reducing system usage fees.
A long-term goal is to eliminate dependence on Russian energy by 2035, diversifying energy sources and increasing the share of renewable energy to 50% by 2040, alongside the development of energy storage capacities.
Infrastructure Development
The plan includes significant infrastructure investments, including the construction of the M200-M8 motorway connecting the center of the country to Kecskemét, and the initiation of the M9 motorway, a southern transport corridor. In Budapest, the Galvani and Soroksári-Duna bridges would be built with dedicated public transport links. A new bridge over the Tisza River in Szeged, with railway and tram-train connections, is also proposed.
The party also intends to review the 35-year concession agreement for road maintenance, aiming to reduce toll fees. Development of Budapest’s Liszt Ferenc International Airport is also planned, including capacity expansion and improved rail connections.
Social Programs and Demographics
The Tisza Party proposes doubling the number of housing constructions and launching a national social and market-based housing construction program to build tens of thousands of new rental units. They also aim to increase the number of dormitory places by at least 50% for students. The party plans to address population decline, aiming to halt it by 2035 and increase Hungary’s population to over ten million by 2050, through a program to encourage the return of Hungarian citizens living abroad.
Combating Corruption and Healthcare
A key pledge is to join the European Public Prosecutor’s Office and increase transparency regarding the ownership of private equity funds. The party also intends to establish an independent Ministry of Health and provide an additional 500 billion Forints annually to the state healthcare system. They aim to reduce waiting lists for medical procedures and increase the nurse-to-doctor ratio.
Pension and Family Support
The party promises to maintain the 13th and 14th monthly pension payments and introduce a pension SZÉP card with an annual allowance of 200,000 Forints. They also propose increasing family benefits, doubling child benefits and maternity support, and increasing the duration of paternity leave to three weeks.
