The Hungarian parliament on Monday unanimously approved a sharp cut in lawmakers’ salaries and allowances, supporting Prime Minister Peter Magyar’s efforts to reduce administrative spending and restore strained public finances.All 189 lawmakers present in the 199-member National Assembly voted in favor of the bill presented by the ruling TISA party.The legislation would reduce the basic monthly salaries of representatives by 40%, to about 3,690 euros before taxes, starting next month, according to Agence France-Presse.The move fulfills a major pledge made by Hungary, who took power in April with promises of reform and the fight against corruption.Critics have long accused former Prime Minister Viktor Orban of maintaining high parliamentary salaries to appease opposition lawmakers.
Pay cuts extend beyond MPs
According to Agence France-Presse, the salary cuts will also apply to the Prime Minister, the Speaker of Parliament, and members of parliamentary committees. Mobile phone bill payments will be cancelled, while office, housing and employee rent allowances will also be reduced.“Besides humanity, it is about restraint…and humility,” Magyar told RTL last month while defending the measures.
According to the Budapest Times, the legislation also proposes cuts in support and budget resources allocated to parliamentary groups as part of a broader cost-cutting package.
The government seeks financial reform
The salary cuts come as Magyar’s government suffers from a large budget deficit inherited from the previous administration.According to Reuters, Hungary’s budget recorded a surplus of 43.5 billion forints (140 million euros) in May, but the deficit for the first five months of the year remains at 3.806 trillion forints, or 90.2% of the government’s target for the full year.Magyar has argued that the savings from parliamentary cuts would equal a full year’s operating costs over the legislature’s four-year term.The government also pledged anti-corruption reforms and broader financial reform as it seeks to stabilize public finances and release billions of euros in EU funding currently withheld due to rule of law concerns.Magyar has repeatedly linked Hungary’s financial difficulties to alleged corruption under Orban’s 16-year rule, while promising broader reforms aimed at increasing transparency and accountability.
