Restaurants in Hungary will be supported by the government before the spring parliamentary elections. What Viktor Orbán promised them
Viktor Orban dines with Xi Jinping in a restaurant in Budapest, during a visit by the Chinese president to Hungary in May 2024, PHOTO: Vivien Cher Benko / AFP / Profimedia Images
Hungarian Prime Minister Viktor Orbán's government on Wednesday announced a 100 billion forint (about 260 million euros) package to support the restaurant industry, as the veteran leader faces an uphill battle to revive the economy ahead of elections in April.
Orbán, whose right-wing Fidesz party is ahead of the opposition Tisza in most of the latest opinion polls, also signaled a possible extension of energy price subsidies. He said the measure is meant to help Hungarians cope with rising heating bills amid cold temperatures.
A Eurobarometer survey conducted in the autumn showed that the rising cost of living is at the top of domestic concerns for Hungarians – despite inflation falling in November from highs of more than 25% in early 2023 to within the central bank's 2%-4% tolerance range.
Orbán's government will provide cash support to restaurants, halve a tourism tax and remove a tax on entertainment expenses for companies worth up to 1 percent of their annual turnover, financial news website portfolio.hu reported, citing Economy Minister Márton Nagy.
Nearly 10,000 restaurants will also be allowed to treat up to one-fifth of their revenue as service tax, which will reduce their tax burden. The government hopes this measure will strengthen the financial situation of restaurants, a sector heavily exposed to increases in the minimum wage, which has risen by 11% at the start of 2026.
Treadmill promises made by Viktor Orbán before next year's elections
Some analysts have warned that after strong wage increases in recent years, a weak economy and rising energy costs could make it more difficult for companies to finance minimum wage increases.
Orbán also announced wide-ranging tax cuts for families, wage increases, food vouchers for pensioners, a pension supplement to be paid in February, and a subsidized mortgage program aimed at bolstering his electoral support.
Fitch Ratings lowered Hungary's rating outlook to negative at the end of last year due to Orbán's pre-election spending initiatives.
The government is expected to decide on changes to energy price subsidies at a meeting later on Wednesday.
Hungarian President Tamás Sulyok announced on January 13 that the decision was made to hold parliamentary elections in the country on April 12 this year.
In the election, Orbán will face Péter Magyar, a former member of the government whose centre-right Tisza party has shaken the Hungarian political scene since its launch in 2024.
Orban's Fidesz party is campaigning under the slogan “Safe Choice”, saying it will keep Hungary out of the war in Ukraine while keeping illegal migrants at bay.
