Hungary's Jan-July general govt deficit confirmed at EUR 2.8bn.

By bne IntelliNews August 23, 2013

Hungary’s cash-based general government budget, excluding municipalities, posted a HUF 851.2bn (EUR 2.8bn) deficit in January to July 2013, accounting for 96.7% of the annual target, the economy ministry said in a statement, confirming the preliminary data. The gap widened by 94.6% from a year earlier as expenditures grew by 10.6% y/y, faster than the revenues’ annual rise of 6.1%.

The central government budget generated a deficit of HUF 1.09tn in January to July 2013, surging by 101.5% y/y. Spending grew by 14.6% y/y and revenues were up 5.4% y/y. Social security funds had a surplus of HUF 180bn in the period, up from HUF 19bn a year earlier. The surplus on the extrabudgetary accounts reached HUF 62.1bn, down 27.8% y/y.

Hungary’s general government sector ran a deficit of HUF 532.6bn in 2012, equalling to 1.9% of the GDP, according to preliminary figures reported by the statistics office to Eurostat under the Excessive Deficit Procedure (EDP). The government targets an ESA95 deficit of 2.7% of GDP in 2013.

The Council of EU finance ministers (Ecofin) backed on June 21 a proposal of the European Commission to lift the excessive deficit procedure against Hungary, which was initiated in 2004 after the country joined the EU. The Commission made its recommendation on May 29, concluding that the country has taken adequate adjustment measures to keep the fiscal deficit below the 3% threshold in both 2013 and 2014.

General Budget, Jan-July, HUF bn        
  2012 2013 % y/y % 2013  plan
General government balance -437.5 -851.2 94.6 96.7
     revenue 8,020.5 8,506.4 6.1 55.5
     expenditure  8,458.0 9,357.6 10.6 57.8
  Central government balance -542.5 -1,093.3 101.5 125.3
     revenue 5,101.2 5,376.6 5.4 52.5
     expenditure  5,643.7 6,469.9 14.6 58.3
  Extrabudgetary funds balance 86.0 62.1 -27.8 -850.7
     revenue 277.3 259.7 -6.3 60.2
     expenditure  191.3 197.6 3.3 45.0
  Social Security Funds balance 19.0 180.0 - -
     revenue 2,642.0 2,870.1 8.6 61.7
     expenditure  2,623.0 2,690.1 2.6 57.8
Source: Ministry for National Economy        

Related Articles

V4 leaders positive after dinner with European Commission president

The head of the European Commission Jean-Claude Juncker held talks with leaders of the Visegrad Group at a nearly three-hour dinner on October 19.  The dinner on the eve of the EU summit was ... more

Wizz Air applies for UK license as it prepares for Brexit turbulence

Hungary-based no-frills airline Wizz Air has set up subsidiary in the United Kingdom and is considering acquiring an air operators certificate (AOC) in preparation for possible negative impacts ... more

Hungarian retail investors continue to pile into domestic government bonds

The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more

Dismiss