Hungary is continuing its pro-family agenda, introducing tax breaks and other incentives for couples who wish to start a family. Prime Minister Viktor Orbán, a longtime ally of President Donald J. Trump, reiterated his government’s commitment to pro-family policies in an address to the parliament this week.
Orbán announced that starting in October, tax deductions for children will be doubled. Additionally, mothers with two or more children will receive full income tax exemptions.
The Hungarian government plans to adjust the age limit for the “childbirth incentive loan” to 35 years, as detailed by Orbán. Under this initiative, prospective parents may apply for an interest-free loan totaling up to 11 million forints ($28,800). If a child is born within the first five years post-loan, repayments are paused for three years, with further benefits if additional children are born. Specifically, the birth of a second child brings a 30 percent reduction in the loan, while a third child eliminates all remaining debt.
Hungary’s birth rate dropped to a low of 1.23 in 2011. Through pro-family initiatives, the rate climbed to 1.61 in 2021 but fell to 1.51 in 2023 amid economic challenges arising from the Wuhan virus pandemic and the war in Ukraine.
Orbán aims to elevate the birth rate above 2.1 by the decade’s end, surpassing replacement rate.
The Prime Minister criticizes Western reliance on mass migration to mitigate declining birth rates, preferring investment in Hungary’s native population. Orbán has highlighted the significance of President Trump ininfluencing pro-family movements in the Western world.
Image by Tim Hammond / No 10 Downing Street.
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