Debt was one of the major issues this week, with several online publications pointing out that despite the government’s insistence that victories have been achieved on the debt-reduction front, the real numbers look disquieting. In major part due to the forint’s deprecation, the budget’s net total debt was at an all time high in September, official figures reveal. The government is countering that these figures do not mean much, for much of its revenue is raised towards the end of the year. That may well be the case, but government projections have been known to be excessively optimistic with regard to revenue expectations, and in light of the country’s precarious international financing there isn’t much room for error. Moreover, a glance at the trends projected for 2012 reveals that for all its uncertainties, the current annum will nevertheless be the easy year.

Policy Solutions' analysis on Hungary's state debt reduction process can be downloaded from here.