S&P Global has warned that the winner of Hungary's upcoming April 12 parliamentary election will be compelled to reduce social spending to stabilize state finances, citing risks to economic recovery from the global energy price shock. The nation's budget deficit has already reached nearly 40% of its full-year target in the first two months of 2026, largely due to increased spending by Prime Minister Viktor Orban's government in the lead-up to the election. S&P indicated that a failure to rebalance the fiscal position post-election, coupled with rising external pressures, could lead to a ratings downgrade for Hungary's 'BBB-' rating. While Orban has dismissed the need for austerity, his rival Peter Magyar is banking on EU funds, anti-corruption measures, and a wealth tax. S&P's current negative outlook reflects concerns about fiscal performance potentially falling short of forecasts, with the energy shock expected to increase inflation and fiscal costs.