Hungary's prime minister, whose Socialists trail the opposition ahead of polls next year, set out a 2006 budget on Thursday that offers to leave more cash in people's pockets but steer a tight course towards euro entry.
Ferenc Gyurcsany told a press conference that despite already announced tax cuts, which were matched on Thursday with spending cuts worth 300 billion Hungarian forints ($1.52 billion), his was no election budget.
He promised a 2006 budget deficit of 2.9 percent of gross domestic product, adjusted for the cost of pension reform - a tougher figure than some analysts expected, and which he said would be in line with Hungary's plan to join the euro by 2010.
"I hope the country will understand and they (the people) will not sell their souls for five forints," Gyurcsany said.
The Socialists and their Free Democrat allies lag the opposition Fidesz in opinion polls and must win over undecided voters who account for around 40 percent of the electorate.
At the same time as proposing prudence, Gyurcsany found money for extra housing subsidies, agriculture and family support - all clear vote winners, analysts said.
Fidesz immediately dismissed the budget as a political ploy.
"What we heard today should be regarded as a PR announcement," Fidesz ex-finance minister Mihaly Varga told a news conference after the budget announcement.
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