Hungary’s cash-based general government budget, excluding municipalities, posted a HUF 75.4bn (EUR 240.5mn) deficit in January 2014, accounting for 7.7% of the annual target, the economy ministry said in a statement on Feb 20, confirming the preliminary data. The deficit widened from HUF 2.5bn a year earlier as expenditures grew by 6.6% y/y, faster than the revenues’ annual rise of 1.2%.
The central government budget generated a deficit of HUF 166.6bn in January 2014, up by 83.7% y/y. Spending grew by 9.2% y/y, while revenues edged down by 0.5% y/y. Social security funds had a surplus of HUF 54.6bn in the period, up by 7.3% on the year. The surplus on the extrabudgetary accounts reached HUF 36.6bn, down by 1.9% 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 economy ministry expects the accrual-based deficit, calculated under the ESA 95, not to exceed 2.7% of GDP, in line with the target, and at best scenario it might be as low as 2.3% of GDP. The final outcome would depend on Eurostat decision on the accounting of the budget transfer supporting the savings cooperative integration, which is expected in March.
|General Budget January, HUF bn|
|2013||2014||% y/y||% 2013 plan|
|General government balance||-2.5||-75.4||2,916.0||7.7|
|Central government balance||-90.7||-166.6||83.7||17.3|
|Extrabudgetary funds balance||37.3||36.6||-1.9||-|
|Social Security Funds balance||50.9||54.6||7.3||-|
|Source: Ministry for National Economy|
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