Hungary’s government has announced a 50 billion forint ($157 million) support scheme to help households cope with rising heating bills this winter, adding to a wave of public spending just

months before a closely watched national election.

Under the plan, which will take effect in January, the state will partially reimburse higher heating costs caused by increased demand during freezing temperatures. Officials say the measure is designed to ease pressure on families as energy use peaks in mid-winter.

Prime Minister Viktor Orbán, in power since 2010, is seeking to bolster economic confidence ahead of the April 12 election. Recent opinion polls show his right-wing Fidesz party trailing the centre-right opposition challenger, Tisza, marking one of the most competitive races of his tenure.

The decision comes as the cost of living remains the top concern for Hungarian voters. A Eurobarometer survey published in December found household expenses outweigh other domestic issues, even though inflation has eased sharply—from highs above 25% in early 2023 to within the central bank’s 2%–4% target range by the end of 2025.

“With this decision, we want to help all Hungarian families who receive energy through some form of pipeline,” Energy Minister Csaba Lantos said at a news conference on Thursday.

Hungary continues to rely heavily on Russian energy imports, covering most of its needs from Russia despite the war in Ukraine—a stance that has drawn criticism from several European Union and NATO partners.

According to Orbán’s chief of staff, Gergely Gulyás, the government will offer households a 30% discount on heating costs. The scheme will be financed partly from the state budget and partly through a tax on energy suppliers.

The move builds on Hungary’s existing energy price subsidy system, which the European Commission estimates cost about 1% of economic output in 2024 and 0.5% last year. Brussels has repeatedly urged Budapest to scale back the programme, warning about its long-term impact on public finances.

Analysts say the latest spending pledge adds to fiscal pressure at a sensitive time. Capital Economics noted that recent policy decisions contributed to Fitch Ratings cutting Hungary’s debt outlook to negative last year.

“Our forecast that the budget deficit will widen to 5.5% of GDP this year may turn out to be too optimistic,” said Capital Economics analyst Nicholas Farr, pointing to growing election-driven spending risks.