BUDAPEST, Jan 21 (Reuters) – Hungarian Prime Minister Viktor Orban’s government announced on Wednesday a 100 billion forint ($304.42 million) package to shore up the restaurant industry as the veteran leader faces an uphill battle to revive the economy ahead of an April election.
Orban, whose right-wing Fidesz trails opposition challenger Tisza based on most fresh surveys, has also flagged a possible extension of energy price subsidies to help Hungarians cope with rising heating bills amid freezing temperatures.
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 will 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 will also be allowed to treat up to a fifth of their revenue as a service fee, reducing their tax bill. The government hopes the measure will shore up the finances of restaurants, a sector strongly exposed to hikes in the minimum wage, which rose by 11% at the start of 2026.
Some analysts have warned that after strong wage growth in recent years, a weak economy and surging energy costs could make it harder for companies to finance the rise in the minimum wage.
Orban has 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.
His government is expected to decide on changes to energy price subsidies at a meeting later on Wednesday.
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)
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