Hungary's budget posts EUR 2.3bn deficit in Q1 2014.

By bne IntelliNews April 9, 2014

Hungary’s cash-based general government budget, excluding municipalities, posted a deficit of HUF 701.2bn (EUR 2.3bn) in the first quarter of 2014, accounting for 71% of the full-year target, the economy ministry informed in a statement. The gap widened by 42.1% from a year earlier.

As in the previous month, the ministry attributed this increase to the hike in teachers’ wage (as of September 2013) and expenditures related to non-profit healthcare entities which operate as budgetary institutions since April 1, 2013. In addition, the central budget paid HUF 68.2bn to municipalities under a debt consolidation scheme.

The central government budget had a HUF 796.1bn deficit in Q1, or 83.4% of the annul plan. The gap on the extrabudgetary accounts stood at HUF 31bn. By contrast, the social security funds had a surplus of HUF 63.9bn.

Hungary’s cash-based general government budget, excluding municipalities, posted a HUF 929.2bn deficit in 2013, accounting for 82.6% of the annual plan.

Hungary's general government sector generated a deficit of HUF 672bn in 2013, equal to 2.2% of the GDP, according to preliminary figures reported by the statistics office to Eurostat under the Excessive Deficit Procedure (EDP). According to the data, the government has met its deficit target, which was set at 2.7% of GDP. The government targets an ESA95 deficit of 2.9% of GDP for 2014.

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