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.