BUDAPEST, June 25 (Reuters) - Hungary's parliament may be able to pass the 2010 budget as early as November and the government will not loosen spending ahead of next year's election, Prime Minister Gordon Bajnai said on Thursday.
The government will make efforts to accelerate the budget-making process because it is in the interest of the country to have a budget for 2010 as soon as possible, Bajnai told state television MTV on Thursday.
'There will be no election budget next year,' Bajnai said, referring to overspending ahead of previous parliamentary elections which led to repeated deficit overshoots.
He said the government had already taken the most painful measures to lead the country out of a deep economic crisis, but next year's budget will need to include further savings measures -- such as cutting the costs of national and local municipality administration and public transport including state railway company MAV.
'If we stretch ourselves ... and everybody is a partner in (the process), this (the 2010 budget) could probably be ready by November,' he added.
Bajnai said he believed it was better for the country to have the current government implementing its crisis management program than having early elections.
The government pledged spending cuts worth a total of 1,300 billion forints ($6.53 billion) this year and next, and parliament is expected to pass key tax changes on Monday to make the tax system more business-friendly from next year.
The spending cuts are needed to meet the conditions of an International Monetary Fund-led rescue package worth $25.1 billion, secured in October to avert financial meltdown.
Bajnai said he did not hear about calls for early elections from the Socialists which together with the smaller liberal party Free Democrats, ensures a parliamentary majority for his government.
The next parliamentary elections are due in April or May 2010, but Socialist party vice chairman Imre Szekeres said last week that the Socialists will debate at a party congress in July whether to end their term in power after parliament passes the 2010 budget.
The Socialists suffered a crushing defeat to the main centre-right opposition party, Fidesz, at European Parliament elections earlier this month.
Bajnai confirmed he would stay in his job as long as he enjoys the support of the Socialists and the Free Democrats, even if the Socialist party congress elects new party leaders next month.
($1=199.02 Hungarian Forint)
((Reporting by Sandor Peto and Krisztina Than; editing by Gary Crosse)) Keywords: HUNGARY BUDGET/ (sandor.peto@reuters.com; +36-1-327-4744; Reuters Messaging sandor.peto.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The government will make efforts to accelerate the budget-making process because it is in the interest of the country to have a budget for 2010 as soon as possible, Bajnai told state television MTV on Thursday.
'There will be no election budget next year,' Bajnai said, referring to overspending ahead of previous parliamentary elections which led to repeated deficit overshoots.
He said the government had already taken the most painful measures to lead the country out of a deep economic crisis, but next year's budget will need to include further savings measures -- such as cutting the costs of national and local municipality administration and public transport including state railway company MAV.
'If we stretch ourselves ... and everybody is a partner in (the process), this (the 2010 budget) could probably be ready by November,' he added.
Bajnai said he believed it was better for the country to have the current government implementing its crisis management program than having early elections.
The government pledged spending cuts worth a total of 1,300 billion forints ($6.53 billion) this year and next, and parliament is expected to pass key tax changes on Monday to make the tax system more business-friendly from next year.
The spending cuts are needed to meet the conditions of an International Monetary Fund-led rescue package worth $25.1 billion, secured in October to avert financial meltdown.
Bajnai said he did not hear about calls for early elections from the Socialists which together with the smaller liberal party Free Democrats, ensures a parliamentary majority for his government.
The next parliamentary elections are due in April or May 2010, but Socialist party vice chairman Imre Szekeres said last week that the Socialists will debate at a party congress in July whether to end their term in power after parliament passes the 2010 budget.
The Socialists suffered a crushing defeat to the main centre-right opposition party, Fidesz, at European Parliament elections earlier this month.
Bajnai confirmed he would stay in his job as long as he enjoys the support of the Socialists and the Free Democrats, even if the Socialist party congress elects new party leaders next month.
($1=199.02 Hungarian Forint)
((Reporting by Sandor Peto and Krisztina Than; editing by Gary Crosse)) Keywords: HUNGARY BUDGET/ (sandor.peto@reuters.com; +36-1-327-4744; Reuters Messaging sandor.peto.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.