Hungarian Prime Minister Viktor Orbán announced plans to introduce a pension top-up as part of a wider pre-election spending drive ahead of the 2026 national vote.

Facing the weakest economic period of his 15-year rule, Orbán has already pledged tax cuts, wage rises, and subsidised housing loans despite a stagnating economy.

He told state radio that Hungary’s growth this year would be between 0.6% and 1% — far below initial forecasts — and argued that austerity would not boost the economy. The proposed “14th-month pension” would grant retirees another month’s payment, a move estimated by ING Bank to cost around 0.6% of GDP.

Economists have warned the plan could worsen Hungary’s fiscal position, with Fitch Ratings recently noting that tax cuts and weak growth threaten to slow budget consolidation. Orbán also faces mounting pressure from a new centre-right opposition party that currently leads in most polls.

Copied