Hungary's Jan-May general govt deficit confirmed at 69.2% of annual target

By bne IntelliNews June 24, 2014

Hungary's cash-based general government budget, excluding municipalities, posted a HUF 681.7bn (EUR 2.2bn) deficit in January to May 2014, accounting for 69.2% of the annual target, the economy ministry said in a statement, confirming the preliminary data announced on June 5. The deficit widened from HUF 559.4bn a year earlier as expenditures grew by 8.4% y/y, faster than the revenues' annual rise of 7.4%.

The central government budget generated a deficit of HUF 817.3bn in Jan-May, up by 12.3% y/y. Spending grew by 10% y/y, while revenues increased by 9.6% y/y. Social security funds had a surplus of HUF 109.3bn in the period, down by 10% on the year. The surplus on the extrabudgetary accounts reached HUF 26.3bn, down by 44.2% y/y.

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. The general government sector had a deficit of HUF 633.6bn in 2013, equal to 2.2% of the GDP, according to 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 government plans to raise the cash-based deficit by HUF 152bn this year, in order to finance the purchase of assets in the energy and broadcasting sectors. The economy ministry believes there will be no impact on the deficit as the government is exchanging cash for shares.

General Budget - Jan-May, HUF bn      
  2013 2014 % y/y % 2013  plan
General government balance -559.4 -681.7 21.9 69.2
     revenue 5,984.8 6,424.8 7.4 40.2
     expenditure  6,544.2 7,106.5 8.6 41.9
  Central government balance -727.9 -817.3 12.3 85.0
     revenue 3,765.9 4,127.7 9.6 38.6
     expenditure  4,493.8 4,945.0 10.0 42.4
  Extrabudgetary funds balance 47.1 26.3 -44.2 -
     revenue 183.1 190.3 3.9 43.5
     expenditure  136.0 164.0 20.6 35.6
  Social Security Funds balance 121.4 109.3 -10.0 -
     revenue 2,035.8 2,106.8 3.5 43.4
     expenditure  1,914.4 1,997.5 4.3 41.2
Source: Ministry for National Economy      

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