By Gergely Szakacs

BUDAPEST (Reuters) -Hungary’s Prime Minister Viktor Orban on Thursday said his government was working “full steam” on a pension top-up, which could cost around $1.6 billion, heightening concerns that pledged deficit cuts are slowing ahead of a 2026 election.

Faced with the weakest economic stretch of his 15-year rule, the veteran leader has launched tax cuts for families, wage hikes and other measures ahead of the vote, which S&P Global estimates are already worth some 2% of economic output.

The top-up would see pensioners who already receive an extra month’s worth of pension per year receive an extra “14th month” payment.

Fitch Ratings told Reuters on Wednesday that Hungary’s deficit cuts would be slower than previously expected and recently-flagged tax cuts create

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