Hungary's Jan-May general govt deficit confirmed at EUR 1.87bn.

By bne IntelliNews June 21, 2013

Hungary’s cash-based general government budget, excluding municipalities, posted a HUF 559.4bn (EUR 1.87bn) deficit in January-May 2013, accounting for 63.5% of the annual target, the economy ministry said in a statement, confirming the preliminary data. The gap widened by 62.6% from a year earlier as expenditures grew by 8.7% y/y, faster than the revenues’ annual rise of 5.4%.

The central government budget generated a deficit of HUF 727.9bn in the first five months of 2013, up by 80.4% y/y. Spending grew by 11.9% y/y and revenues were up by 4.3% y/y. Social security funds had a surplus of HUF 121.4bn in the period, as compared to a HUF 2.3bn deficit a year earlier. The surplus on the extrabudgetary accounts reached HUF 47.1bn, down by 23.8% y/y.

General Budget, Jan-May, HUF bn        
  2012 2013 % y/y % 2013  plan
General government balance -344.1 -559.4 62.6 63.5
     revenue 5,677.5 5,984.8 5.4 39.1
     expenditure  6,021.6 6,544.2 8.7 40.4
  Central government balance -403.6 -727.9 80.4 83.3
     revenue 3,612.3 3,765.9 4.3 36.8
     expenditure  4,015.9 4,493.8 11.9 40.5
  Extrabudgetary funds balance 61.8 47.1 -23.8 -645.2
     revenue 194.4 183.1 -5.8 42.4
     expenditure  132.6 136.0 2.6 31.0
  Social Security Funds balance -2.3 121.4 - -
     revenue 1,870.8 2,035.8 8.8 43.8
     expenditure  1,873.1 1,914.4 2.2 41.2
Source: Ministry for National Economy        

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). According to the data, the government has met its deficit target, which was set at 2.7% of GDP. The European Commission recommended on May 29 lifting of the excessive deficit procedure against Hungary, concluding that the country has taken adequate adjustment measures to keep the fiscal deficit below the 3% threshold in both 2013 and 2014.

Related Articles

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

Hungary to issue euro bonds after six years

Hungary’s Government Debt Management Agency AKK announced on September 26 that it plans to issue 10-year Eurobonds to refinance high-interest dollar bonds maturing soon. The agency mandated BNP ... more

South Africa’s NEPI acquires shopping malls in Hungary, Bulgaria for €528mn

South African fund NEPI Rockastle said it has acquired two new shopping centres – in Hungary and Bulgaria – for a combined €528mn. The fund, which purchased another shopping centre in ... more

Dismiss