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IMF:Hungary Needs Fundamental Changes To Reach Fiscal Goals-2 "Fiscal discipline is a key factor and if doubts arise (among investors) regarding commitment to the fiscal consolidation and reform process, Hungarian assets could come under pressure," Lipsky said. "Now is an unusually favorable moment of opportunity, given the strong international environment, for Hungary to carry out further reform measures and this shouldn't be missed," Lipsky added. He stressed that Hungary was facing a financial crisis last spring, before the government launched its fiscal tightening program, as markets lost patience with the repeated failure to meet fiscal targets and the very high budget deficit. "Although the fiscal consolidation program has been successful so far and the budget deficit is seen declining to 4.5% of gross domestic product in 2008, the budget deficit is still very high in Hungary," Lipsky said. He added that the government's fiscal targets beyond 2008 look doubtful and will require further reform measures. "Transparency in government expenditure is key, and when we talk about reducing expenditures this could mean restraining the growth of these expenditures and not necessarily reducing them," Lipsky said.
IMF:Hungary Needs Fundamental Changes To Reach Fiscal Goals-2 "Fiscal discipline is a key factor and if doubts arise (among investors) regarding commitment to the fiscal consolidation and reform process, Hungarian assets could come under pressure," Lipsky said. "Now is an unusually favorable moment of opportunity, given the strong international environment, for Hungary to carry out further reform measures and this shouldn't be missed," Lipsky added. He stressed that Hungary was facing a financial crisis last spring, before the government launched its fiscal tightening program, as markets lost patience with the repeated failure to meet fiscal targets and the very high budget deficit. "Although the fiscal consolidation program has been successful so far and the budget deficit is seen declining to 4.5% of gross domestic product in 2008, the budget deficit is still very high in Hungary," Lipsky said. He added that the government's fiscal targets beyond 2008 look doubtful and will require further reform measures. "Transparency in government expenditure is key, and when we talk about reducing expenditures this could mean restraining the growth of these expenditures and not necessarily reducing them," Lipsky said.
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