Hungary’s cash-based general government budget, excluding municipalities, posted a HUF 929.2bn (EUR 3.1bn) deficit in 2013, accounting for 82.6% of the revised annual target, the economy ministry said in a statement, confirming the preliminary data, announced on January 3.
Hungary raised on December 4 the cash-based deficit target by HUF 74.4bn to HUF 1,125bn, which was related to higher spending on the integration of the country's savings cooperatives and a repayment to oil and gas company MOL.
The deficit widened by 55.2% from a year earlier as expenditures grew by 15.6% y/y, faster than the revenues’ annual rise of 14%.
The central government budget generated a deficit of HUF 979.7bn in 2013, up by 60.3% y/y. Spending grew by 19.3% y/y and revenues were up 16.6% y/y. The surplus on the extrabudgetary accounts reached HUF 50.5bn, down by 61.2% y/y.
The budget position of the social security funds has been balanced in 2013, which positively compared to a HUF 117.5bn deficit in 2012.
The economy ministry expects the accrual-based deficit, calculated under the ESA 95, not to exceed 2.7% of GDP, in line with the target, and at best scenario it might be as low as 2.3% of GDP. The final outcome would depend on Eurostat decision on the accounting of the budget transfer supporting the savings cooperative integration, which is expected in March.
| General Budget 2013, HUF bn | ||||
| 2012 | 2013 | % y/y | % 2013 plan | |
| General government balance | -598.6 | -929.2 | 55.2 | 82.6 |
| revenue | 14,422.5 | 16,441.8 | 14.0 | 106.3 |
| expenditure | 15,021.1 | 17,371.0 | 15.6 | 104.7 |
| Central government balance | -611.2 | -979.7 | 60.3 | 87.6 |
| revenue | 9,403.6 | 10,967.8 | 16.6 | 107.2 |
| expenditure | 10,014.8 | 11,947.5 | 19.3 | 105.3 |
| Extrabudgetary funds balance | 130.1 | 50.5 | -61.2 | - |
| revenue | 508.3 | 611.1 | 20.2 | 105.9 |
| expenditure | 378.2 | 560.6 | 48.2 | 96.0 |
| Social Security Funds balance | -117.5 | 0.0 | - | - |
| revenue | 4,510.6 | 4,862.9 | 7.8 | 104.5 |
| expenditure | 4,628.1 | 4,862.9 | 5.1 | 104.5 |
| Source: Ministry for National Economy |
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