( dpa ) - Hungary's President Laszlo Solyom on Tuesday called on parliament to resolve the issue of revenues lost owing to a recent referendum on scrapping fees for medical treatment and education as he signed the bill ending the fees into law.
Hungarians on March 9 overwhelmingly voted to cancel fees for doctor visits, hospital stays and tuition fees in a move seen as a blow to the government's ability to carry out further economic reforms.
Lawmakers voted to end the fees from April 1, and although Solyom signed the resultant bill, he said that parliament's decision left unanswered questions.
Solyom pointed out that the Hungarian constitution does not allow referenda to be held on questions that affect the current year's budget, saying that it "should not have been held" if the fees were to be cancelled this year.
"Parliament has the right to scrap the fees earlier than January 1, 2009, but legally the decision is independent from the outcome of the referendum," he said in a statement.
The lost revenue to the health and education systems is estimated at 50 billion forints (289 million dollars) this year, and Solyom said parliament was "responsible for deciding on the financial consequences and resolving them."
Main opposition party Fidesz wanted to use money from the national lottery to replace the missing revenue, but the government said that it was not in a position to divert funds.
The fees are part of unpopular austerity measures aimed at reducing the budget deficit and, ultimately, at getting Hungary ready to adopt the euro.
While the measures have so far cut the deficit from 9.2 per cent of gross domestic product in 2006 to an estimated 5.7 per cent in 2007, they have hit economic growth, and forced up inflation and unemployment.
The unpopular measures - which have seen taxes rise, energy prices go up and spending cut - have helped the ruling Hungarian Socialist Party plunge to approval ratings of 15-19 per cent in polls.
The September 2006 leak of a tape on which Prime Minister Gyurcsany admitted lying about the need to take economic action prior to that year's general election also contributed to the slide.
Most analysts believe Gyurcsany now has a limited amount of time to win back support, with his party nervously keeping on eye on the next general elections in 2010.
Further reforms, including the introduction of private capital into the health insurance system, are now believed to be in jeopardy as a consequence of the referendum and the government's unpopularity.