Hungary should delay or cancel some state investments and keep a tight control over spending while imposing temporary sectoral taxes to rein in the budget deficit, the central bank said in a 200-pages proposal published on Thursday.

It said steps were needed both on the revenue and expenditure side. The bank also proposed changes to debt financing, and said more bank liquidity should be channelled into government debt with the issuance of new inflation-tracking bonds and longer-dated variable interest rate bonds. (Reporting by Krisztina Than)