Hungary's Orban pledges housing subsidies for public servants in pre-election push

Straits Times

2 days ago

Sign up now: Get ST's newsletters delivered to your inbox
FILE PHOTO: Hungarian Prime Minister Viktor Orban looks on at Balvanyos Summer University, on the day he delivers a speech to ethnic Hungarians, in Baile Tusnad, Romania, July 26, 2025. Inquam Photos/Tudor Pana via REUTERS/File Photo
BUDAPEST - Hungary plans to give public servants, including police and teachers, an annual 1 million forint (nearly $3,000) housing subsidy, Prime Minister Viktor Orban announced as he gears up for a closely-fought 2026 election.
The policy pledge, announced in a social media post, follows a raft of other spending measures by Orban's government in the run-up to the election in which he faces an unusually strong challenger amid economic headwinds.
In power since 2010, the veteran nationalist has struggled to revive Hungary's economy from an inflationary surge following Russia's February 2022 invasion of Ukraine, with the economy on track for a third successive year of near stagnation.
"We will give one million forints of housing subsidy to doctors, nurses, police officers, teachers, soldiers, and other civil servants, which can be used towards mortgage repayments or as a down payment for a new home loan," Orban said.
Orban said the government would make a final decision on the scheme next month.
At a time when the budget is already stretched, the plan comes on top of spending that includes big income tax cuts, pushing the total cost of Orban's family benefits to 4.8 trillion forints ($13.71 billion) next year, worth 5% of Hungary's economic output.
The government has also recently announced a subsidised mortgage scheme for first-time home buyers that is estimated to cost up to $443 million per year in interest rate subsidies.
Top stories
Swipe. Select. Stay informed.
Singapore SMRT's finances hit by 2024 EWL disruption; profit after tax for trains division dips 8%
Asia US-Malaysia tariff deal set for Aug 1 after Trump-Anwar phone call
Singapore Underground pipe leak likely reason for water supply issues during Toa Payoh fire: Town council
Business Singapore gold investment soars 37% to 2.2 tonnes in Q2 while jewellery demand wanes
Multimedia 60 years, 60 items: A National Day game challenge
Life Milo tees, kaya toast pimple patches, crockery: Here are the SG60 merch to collect
Business Deepening Singapore-Latin America ties a matter of urgency amid global trade uncertainty: Alvin Tan
Singapore 'Switching careers just as I became a dad was risky, but I had to do it for my family'
Hungary's government increased its borrowing plan last month in part to fund its pre-election measures amid a weaker than expected economy.
Hungary's economy grew by an annual 0.1% in the second quarter, slightly more than expected, data showed on Wednesday, a day after the government slashed its 2025 economic growth forecast to 1% from 2.5%.
Orban had hoped a rebound in economic growth would help him secure another term in next year's elections. REUTERS