Hungary’s Jan-Oct budget deficit reaches 84.5% of revised annual target.

By bne IntelliNews November 8, 2013

Hungary’s cash-based general government budget, excluding municipalities, posted a HUF 887.7bn (EUR 3bn) deficit in the first ten months of 2013, accounting for 84.5% of the annual target, the economy ministry informed.

Hungary raised on September 24 the annual cash-based deficit target by HUF 171bn to HUF 1,050bn, which was related to the state purchase of E.ON’s local gas business and the integration of savings co-operatives.

In October alone, the general government, excluding local councils, had a surplus of HUF 61.4bn. This resulted from a HUF 24.5bn surplus of the central government balance, a HUF 21.6bn surplus of the social insurance and a HUF 15.3bn surplus on the extrabudgetary accounts.

The ministry said that the monthly fiscal position was in line with the government’s expectations. The revenue and expenditure forecasts for the next months, including a very large surplus expected for December, support the projection that the deficit target of below 3% of GDP will be met this year, the ministry said. The ministry has not provided detailed figures of the budget execution in October.

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