Finance
Hungary's PM offers support for restaurants, household heating ahead of election
Published by Global Banking & Finance Review®
Posted on January 21, 2026
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 21, 2026
2 min readLast updated: January 21, 2026
Hungary's PM announced a $300M package to support restaurants and cover heating costs, aiming to boost the economy before the April election.
BUDAPEST, Jan 21 (Reuters) - Hungary's government announced on Wednesday a 100 billion forint ($300 million) package to shore up the restaurant industry and said that it would cover extra heating costs for households in January.
Prime Minister Viktor Orban's government announced the measures as the veteran leader faces an uphill battle to revive the economy ahead of an April election. His right-wing Fidesz trails opposition challenger Tisza based on most recent surveys.
An autumn Eurobarometer survey showed the rising cost of living topped Hungarians' domestic concerns - despite inflation retreating from highs above 25% in early 2023 to the central bank's 2% to 4% tolerance band in November.
Orban's government would provide liquidity support to restaurants, halve a tourism tax and waive a levy on entertainment spending for companies worth up to 1% of their annual turnover, financial news website portfolio.hu reported, citing Economy Minister Marton Nagy at a briefing.
Nearly 10,000 restaurants would also be allowed to treat up to a fifth of their revenue as a service fee, reducing their tax bill.
Later in the day, Orban said the government was going to pay the extra cost facing households in their heating bills due to freezing temperatures in January.
It was not immediately clear how the measure would affect the existing state subsidy scheme that has been in effect for households' gas and electricity consumption.
Caps on gas and electricity bills have been a key plank of Orban's policies but the costs surged in 2022 and forced the government to abandon it for high-usage households.
Earlier, Orban had also announced large-scale tax cuts for families, wage hikes, food vouchers for pensioners, a pension top-up to be paid in February and a subsidised housing loan programme to shore up his support.
Fitch Ratings late last year cut Hungary's outlook to negative on Orban's pre-election spending initiatives.
($1 = 328.49 forints)
(Reporting by Gergely Szakacs; Editing by Kate Mayberry)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
A tax cut is a reduction in the amount of tax that individuals or businesses are required to pay, often aimed at stimulating economic growth by increasing disposable income.
Liquidity support refers to financial assistance provided to businesses to help them manage their cash flow and meet short-term financial obligations.
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