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Based on the assessment of the Convergence Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections in the Programme is somewhat optimistic. The Hungarian authorities’ growth projections for 2013 and 2014 of 0,7 % and 1,9 % respectively, are higher by around half a percentage point compared to the Commission services 2013 spring forecast. The objective of the budgetary strategy outlined in the Convergence Programme is to ensure the sustainable correction of the excessive deficit by the 2012 deadline set by the Council in line with the Council Recommendation under the excessive deficit procedure of 13 March 2012 and the continued respect of the medium-term objective (MTO). Hungary has undertaken significant fiscal efforts in 2012 and with a budget deficit outcome of 1,9 % of GDP overachieved the deficit target of 2,5 % of GDP recommended by the Council, partly on account of additional one-off revenues of 0,2 % of GDP on top of those which were acknowledged already at the time of that Council Recommendation. However, the corrective measures for 2012 and beyond, in particular those announced in the autumn of 2012 were mainly concentrated on the revenue side, primarily focusing on selected sectors, raising questions about the sustainability of the consolidation efforts. According to the Commission services 2013 spring forecast further efforts are needed for both 2013 and 2014 in order to correct the excessive deficit in a sustainable manner. Following the publication of the Commission services 2013 spring forecast the Government adopted a new corrective package focusing on the expenditure side, and based on the updated assessment of the Commission, the deficit is projected to remain below the 3 % of GDP threshold with the new measures in both 2013 and 2014. The Convergence Programme has changed the MTO from a structural balance of –1,5 % to –1,7 % of GDP. The new MTO is in line with the requirements of the Stability and Growth Pact. Hungary recorded a structural balance of –0,7 % of GDP in 2012, namely well above its revised MTO, and the Commission services 2013 spring forecast foresees the structural balance to stay in line with the MTO over the forecast horizon and to stand at –1,1 % in 2013 and –1,8 % in 2014. Based on the measures adopted after the Commission services 2013 spring forecast the structural balance could remain above the MTO in 2014 as well. The growth rate of government expenditure in 2013 and 2014, net of discretionary revenue measures, will be broadly in line with the reference medium-term rate of potential GDP growth, but is expected to significantly exceed it in 2015 and 2016. Thus, the expenditure benchmark of the Stability and Growth Pact will not be met in those two years. According to government plans, the public debt-to-GDP ratio will continuously decrease throughout the programme period from 79,2 % in 2012 to 77,2 % in 2014 and further to 73,4 % in 2016, namely it will remain above the 60 % of GDP reference value. In contrast, the Commission services 2013 spring forecast, taking account of risks to the consolidation plans, expected only a marginal decrease to 78,9 % of GDP in 2014 which should be around 0,5 percentage points lower with the new corrective measures. Hungary will be in a transitional period from 2013 regarding compliance with the debt criterion, and according to the Commission services 2013 spring forecast it is making sufficient progress towards compliance with the debt criterion in 2013 and 2014.