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

Hungarian opposition parties seek explanation for secret admission of asylum seekers

Despite its all-out attacks on the EU’s refugee quotas, Viktor Orban's government secretly gave permission for the admission of the same number of asylum seekers to the country in 2017 as ... more

Hungarian president sets date for parliamentary election

President Janos Ader has set April 8 as the date of Hungary's general election, it was announced on January 11. This is the earliest possible Sunday that the ballot can be held under the law. The ... more

Hungarian government backtracks from collecting fines from opposition parties before election

The Economy Ministry on January 10 asked the tax authority to delay collecting fines from opposition parties imposed by the state auditor ASZ to ensure that their pre-election budgets and campaign ... more

Dismiss