Hungary's cash-based general government budget, excluding municipalities, posted a HUF 813.7bn (EUR 2.6bn) deficit in the first half of 2014, accounting for 82.6% of the annual target, the economy ministry said in a statement, confirming the preliminary data announced on July 7. The deficit widened from HUF 727.1bn a year earlier as expenditures grew by 7.5% y/y, faster than the revenues' annual rise of 7%.

The central government budget generated a deficit of HUF 965.9bn in H1, up by 5.6% y/y. Spending grew by 8.7% y/y, while revenues increased by 9.4% y/y. Social security funds had a surplus of HUF 114.5bn in the period, down by 15.9% on the year. The surplus on the extrabudgetary accounts reached HUF 37.7bn, down by 33% y/y.

In June alone, the cash-based general government budget, excluding municipalities, posted a deficit of HUF 132bn, down by 18.7% y/y.

The cash-based general government deficit stood at HUF 929.2bn in 2013, accounting for 82.6% of the annual plan.

Hungary's general government sector's deficit stood at 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.

The Hungarian government has decided to cut state spending by some HUF 110bn in order to meet this year's deficit target.