Orbán to hand out billions of forints to restaurants before the elections

Hungarian Prime Minister Viktor Orbán announced extensive financial aid for the restaurant sector amounting to 100 billion forints (€260 million) just a few months before the parliamentary elections.

In an effort to boost the economy and win voter support, his government is offering a liquidity injection, cutting taxes for businesses and households, and expanding social benefits.

Restaurants will receive tax breaks on tourism and entertainment, as well as a more favorable tax regime on service charges. The package is a response to a combination of rising costs, an 11 percent increase in the minimum wage, and public concerns about the cost of housing and heating.

Orbán is also considering extending energy subsidies.

Polls suggest that his Fidesz party is trailing behind the opposition Tisza movement, which may explain the intensity of pre-election spending. However, Fitch warns of the negative consequences of such spending on the country's rating.

(reuters, pir)