Hungary to pay pensioners an additional $1.8 billion despite budget deficit risk

Orban announced additional pension payments in Hungary for almost $2 billion as part of his election campaign. According to the Hungarian politician, his government is “fully committed” to the move, as it is part of a long-standing promise. But economists have warned that the decision will lead to a rise in Hungary’s budget deficit.

DetailsHungarian Prime Minister Viktor Orban said on Thursday that his government is working “full steam ahead” on a pension bonus for the country’s citizens. Monthly 13th pension payments for the country’s more than 2 million pensioners have been restored. The bonus could cost about $1.6-1.8 billion. However, the new measure, according to economists, if implemented next year, will lead to an increase in the budget deficit to 5% of gross domestic product.

Each additional monthly pension payment is worth about 600 billion forints ($1.8 billion), according to Marianne Trippon, an analyst at CIB Bank Intesa Sanpaolo SpA in Budapest.

Another estimate is that the additional monthly pension payments since Orbán took office were worth 536 billion forints ($1.60 billion) in February. However, analysts confirm that the additional amount contributed to a large budget deficit in early 2025.

AddendumThe announcement of the gift to Hungarian pensioners came after S&P Global Ratings left Hungary’s credit rating unchanged at the lowest investment grade last Friday, while maintaining a negative outlook.

Let us remind youHungarian Prime Minister Viktor Orban recalled that Brussels’ “war plan” against Russia was presented in Denmark, and stated that he himself would prefer to see “peaceful Hungarians”.

We are starting to collect signatures against Brussels’ war plans. We will be there in every city and every village, Orban emphasized.