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Hungary
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Tuesday, October 20, 2026
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The Tisza government has presented a budget intended to serve as a paradigm shift, aiming to end the state’s habit of enriching its allies. Prime Minister Péter Magyar’s plan promises a new social contract through reallocation, though the math rests on a forecast of 2.4% GDP growth and a commitment to bring the deficit down to 2.8% by 2030.
While the cabinet drafts the future, investigators are busy with the past. Authorities are probing the loan agreements of a prominent Hungarian-Russian businessman and a 713m HUF cleaning contract awarded to the wife of Zoltán Kovács. Mr Magyar has also filed a complaint over public funds channeled to the Fellegi Group; separately, the leader of a half-billion-forint VAT fraud ring was intercepted at the airport.
The week’s domestic agenda was interrupted by bomb threats that forced the evacuation of two hospitals and a high school, while public sector unions complained that a proposed 15% salary increase is not enough to keep pace. Soldiers have also found an unlikely advocate in a report claiming no other NATO member treats its own troops with such harshness.
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Péter Magyar's Tisza government has outlined its budget for the upcoming year, signaling a departure from crony capitalism and proposing a new social contract. The plan includes forecasts for inflation and GDP growth, with the government expecting 2.4% GDP growth and aiming to reduce the budget deficit to 2.8% by 2030. Discussions about the budget, including a live session with András Kármán and Péter Magyar, have highlighted the focus on reallocation and a paradigm shift in state operations.
444:
Tisza's Budget Breaks with Crony Capitalism, Promises New Social Contract with…
Peter Magyar announced a concrete package of measures in parliament, proposing a government that aims not to shrink the state but to operate differently. The soon-to-be-released document is described as a budget of reallocation and paradigm shift, not just of justice and development.
HVG:
Kármán András and Magyar Péter live on next year's budget
András Kármán and Péter Magyar are discussing the upcoming year's budget live.
HVG:
Magyar Péter announces inflation and GDP growth forecasts for the budget
Péter Magyar has announced the projected inflation and GDP growth rates for the national budget.
444:
Government Expects 2.4% GDP Growth
Peter Magyar also stated on Kossuth Radio that the budget deficit must be reduced to 2.8% by 2030.
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Public service workers and health professionals are expressing dissatisfaction with a proposed 15% salary increase, deeming it insufficient and calling for further adjustments. This comes amidst revelations that 100,000 people live in overcrowded and poorly maintained social care facilities, with 26 state residential facilities halting admissions due to staff shortages.
Telex:
Public Service Workers Deem 15% Salary Increase Insufficient
Employees in public service see a positive step but are generally disappointed with the proposed 15% salary increase.
Telex:
100,000 Live in Overcrowded, Poorly Maintained Social Care Facilities
A 17.8% salary increase has been announced for the social sector, but the system is overwhelmed, with 26 state residential facilities halting admissions due to staff shortages.
24.hu:
PDSZ and health workers' chamber expected salary increases this year, asking…
Both the Public Education Trade Union (PDSZ) and the Chamber of Health Professionals are seeking salary adjustments this year and are directing their requests to Peter Magyar.
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An investigation has been launched into the loan agreements of a prominent Hungarian-Russian businessman, Ruslan Rahimkulov. Separately, the Hungarian Transmission System Operator Company (Mavir) is investigating how a cleaning contract worth 713 million HUF was awarded to the wife of Zoltan Kovacs. Péter Magyar has also filed a complaint concerning over 3 billion forints in public funds allegedly channeled to the Fellegi Group. In a separate development, the leader of a VAT fraud scheme…
24.hu:
Investigation launched into the country's richest Hungarian-Russian…
An investigation has been initiated concerning the vast loan agreements of a prominent Hungarian-Russian businessman.
24.hu:
Mavir investigates how Zoltan Kovacs' wife won a 713 million HUF cleaning…
The Hungarian Transmission System Operator Company (Mavir) is examining the circumstances under which the wife of Zoltan Kovacs secured a cleaning contract worth 713 million HUF.
HVG:
Not only the 3 billion forints of public money ended up with the Fellegi…
More than the reported 3 billion forints in public funds was channeled to the Fellegi Group, prompting a complaint from Péter Magyar.
Telex:
VAT Fraud Ring Leader Arrested at Airport
The leader of a VAT fraud scheme, which defrauded taxpayers of half a billion forints since 2020, was apprehended at Ferihegy Airport.
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Multiple institutions, including hospitals in Salgótarján and Radnóti, as well as several schools, have received bomb threats, leading to evacuations and closures. The perpetrator of one threat, made from an English phone number, faces potential imprisonment.
24.hu:
'Ten minutes until it explodes!' - Salgótarján hospital evacuated, man who…
The hospital in Salgótarján was evacuated due to a bomb threat; the perpetrator, who allegedly made the threat from an English phone number, faces up to three years in prison.
24.hu:
Bomb threat at Radnoti, other institutions may also have been threatened
A bomb threat was reported at the Radnoti hospital, with indications that other institutions might have also been targets.
Telex:
Bomb Threat Leads to School Closures and Evacuations
Due to bomb threats, a special teaching break was declared at ELTE Radnóti Miklós High School.
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