All proceeds from the new health tax will go to the National Health Fund. The upper annual limit of the tax will be set at HUF 400,000. The government expects the move to bring an extra revenue of HUF 10 billion for the state budget.

As of Jan. 1, 2006 the central budget will pay an allowance to the National Health Fund covering the health taxes of the unemployed. The amount of the allowance will be set at 9% of the half of the minimal wage for the homeless, farmers and family members without income, while it will come to 9% of the three-fourth of the minimal wage for university students.

The government decided to foot HUF 187.2 billion to the Pension Fund Administration to help it break even. The National Health Fund is expected to post a deficit of HUF 341.3 billion this year.