In a significant announcement made through social media, Hungary's Minister for National Economy, Márton Nagy, detailed the government's robust plan to stimulate economic growth through a series of 21 strategic measures.

Central to this strategy is the mobilization of 4 trillion forints, with a focus on bolstering family incomes and supporting small and medium-sized enterprises (SMEs).

Minister Nagy outlined a comprehensive economic action plan, which allocates 2.6 trillion forints to families and 1.4 trillion forints to SMEs.

He emphasized the benefits for households, stating that tax incentives would be doubled, the minimum wage increased, and a work loan program initiated.

These measures aim to fortify household income and stimulate economic activity at the grassroots level.

Nagy also addressed housing challenges faced by the younger population.

The government plans to introduce the Rural Home Renovation Program, which includes housing aid where employers can provide up to 150,000 forints towards young employees' housing costs.

This initiative reflects a broader aim to support young people's access to affordable housing across the country.

The minister urged young people to take advantage of these opportunities and highlighted the tailor-made support for businesses under the Demján Sándor Program.

This initiative is designed to offer credit, capital, and non-repayable grants to facilitate business investments and digitalization, with the ultimate goal of energizing the economy.

Nagy summarized the broader vision by stating, 'We are offering a new alliance to families and businesses,' signaling the Hungarian government's commitment to cooperative economic growth.

Earlier reports have detailed the rollout of policies such as the worker's loan initiated in January, which, according to MBH Bank, has been predominantly used for car purchases, debt refinancing, and new business ventures.

However, the Oeconomus Economic Research Foundation has expressed caution about the economic impact of the measure, suggesting that while an uptake by around 300,000 workers could inject 1,200 billion forints into the economy (assuming each takes a 4 million forint loan), the government has projected a more modest demand of 500 billion forints.

Meanwhile, the Demján Sándor Program, announced in October, aims to enhance support for SMEs, contributing to a targeted economic growth rate of between 3 to 6 percent for the coming years.

Detailed plans for how SMEs will access and utilize these funds starting in early 2025 have been compiled by Economx, shedding light on the government's strategic support to sustain domestic economic dynamism.