Party vice chairman Lajos Kosa was cited as saying by business news website napi.hu that the new government had found public finances in a much worse shape than previously expected and there was a slim chance of avoiding a Greek-style scenario.
When asked about those comments, Prime Minister Viktor Orban's spokesman Peter Szijjarto told a news conference:
"It was (Socialist) Prime Minister Ferenc Gyurcsany who spoke about a default. Moreover, he proudly said that Hungary was close to default, he said that a year and a half ago...and then he was proud that he could only save Hungary from default by taking the IMF loan."
"From this aspect I do not think this (Kosa's comments) are exaggerated at all."
Szijjarto earlier in the day told television that Hungary's new government plans to take steps to improve public finances and wants deep reforms and tax cuts to boost competitiveness after it reveals the "true" state of the 2010 budget.
At the press conference when he was asked whether it was conceivable that tax cuts and economic stimulus measures would have to be delayed due to higher deficit numbers he said: "No."
When asked if tax cuts and deficit cuts could go together he said: "Yes."
"In Hungary the previous government falsified data. In Greece, they also falsified data. In Greece the moment of truth has arrived. Hungary is still before that," Szijjarto added.
"This is exactly what we want to avoid, and this government is ready to avoid the path that Greece took. After realising what reality is, we will not hesitate to act," he said.
Szijjarto also said the austerity measures and tax hikes complicating the tax system which the Socialist administration tried in the past had failed.
Analysts and markets were deeply confused by the comments and urged clarity.
"The comments are extremely confusing and more market panic should be expected. For example, first the spokesman said that it won't give up plans to lower taxes, then later that it won't go back to promised tax cuts as to avoid the Greek path," Nordea Bnak said.
"At this stage, we don't know how severe the situation is. The most negative in our view is the government's way of communicating and that may cause further panic."
