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By the end of April the government will propose new measures that serve justice in society and the proposals can be passed at Parliament by the end of June, Finance Minister designate János Veres said last Thursday.

Veres pledged enhanced action aiming to expand tax payment to those people who currently do not contribute to the costs of running the country. Veres anticipates the move will involve between 500,000 and 1 million people currently working in the black or “gray” economy. The Finance Minister designate said the measures will include moves which will “motivate, orientate or increase scrutiny”. Citing an example to the latter type of moves he mentioned that currently many people receive healthcare treatment without paying any healthcare tax, a practice he wishes to terminate. The moves will be supported by the majority of society, Veres added.

Speaking in a morning TV show, Veres stressed that public sector deficit will stay this year at the level planned earlier. Not counting one-off items, public sector deficit by April reached 33% of the amount planned for the entire year. Economic growth in 2005 will be close to 3.8% of GDP, the figure estimated in the central budget, Veres said, adding that inflation will also be close to what the government has forecast. At the time of making plans for this year’s central budget, the government estimated annual inflation for 2005 to be at 4.5%, a figure the Finance Ministry lowered to 4.0% in its most recent report.

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