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1997-08-29
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1 RFE/RL NEWSLINE - 29 August 1997 (mind)  38 sor     (cikkei)

+ - RFE/RL NEWSLINE - 29 August 1997 (mind) VÁLASZ  Feladó: (cikkei)

RFE/RL NEWSLINE 
Vol. 1, No. 106, 29 August 1997

HUNGARY TO HOLD BINDING REFERENDA ON NATO, LAND
OWNERSHIP. In an unexpected reversal of its previous position, the
cabinet on 28 August decided to hold binding referenda on the
country's accession to NATO and on the ownership of land by foreign
companies registered in Hungary. Prime Minister Gyula Horn said the
referenda will be held simultaneously on 16 November. The decision
still has to be approved by the parliament. Horn expressed
confidence that the majority of voters will back joining NATO. He also
said that, with 20 percent of the country's arable land lying fallow,
the market price of land is far below its value. "We want to see as
much capital as possible pumped into the agricultural sector," he
remarked. The opposition Hungarian Democratic Forum announced it
opposes the cabinet's proposed formulation on land ownership and
will continue collecting signatures for a referendum proposed by the
opposition.

HUNGARIAN CABINET APPROVES 1998 DRAFT BUDGET. The cabinet
on 28 August approved a draft budget for 1998 providing for a
deficit of 430.8 billion forint (some $ 2.1 billion). The draft foresees
3-4 percent growth in GDP, a 13-14 percent rise in consumer prices,
and a 2 percent growth in real income, Hungarian media reported. It
also proposes to make voluntary pension fund contributions 50
percent tax deductible and regular pension insurance contributions
25 percent deductible. Farmers with no more than three hectares of
land will be able to lease those plots tax free. The draft also calls for
a 10-year tax exemption for investments exceeding 3 billion forints
in regions requiring special development. Corporate tax will drop
from 27 percent to 20 percent, while the tax on dividends will
increase from 27 percent to 35 percent.


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