The government is trying to put out a fire and is only thinking short term, presumably on a trial and error basis, László Csaba, professor of economics at Central European University (CEU), told RTL.hu regarding the newly-announced special taxes on companies in certain sectors that are making “extra profit.”
The economist said it was remarkable that four-fifths of the annual budget deficit had been reached just in the first month of the year. He also felt that so-called “prestige” projects like Fudan University, the Budapest-Belgrade railway line, and Paks 2 should be put off.
László Csaba pointed out that gas and oil company MOL Zrt. had certainly made “extra profit,” as the company is suspected of being able to purchase Russian oil at a discount of up to 20-30%. As such, it would be taxed in most other countries.
The current measures can be called “budgetary discipline,” said the economic professor, but this means the same thing as “austerity.”
Csaba also noted that the concept “extra profit” is a part of Marxist economic theory. [HVG]