Hungary’s budget runs EUR 3.2bn deficit at the end of August

Hungary’s cash flow-based budget deficit, excluding local councils, was at 979.9 billion forints (EUR 3.2bn) at the end of August, preliminary data released by the Economy Ministry on Thursday show.

The deficit reached 84 percent of the 1,166.4 billion forint full-year target.

The central budget had a 1,019.0 billion forint deficit and the social insurance funds were 71.7 billion forints in the red at the end of August. The separate state funds ran a 110.8 billion forints surplus.

In August alone, the budget, ran a 163.1 billion forint deficit.

The eight-month deficit was up from a 274.0 billion forint deficit in the base period.

The ministry said revenues connected to employment and consumption were up markedly in August compared with the same month last year because of higher wages and government support given to families.

It cited the positive effect on incomes of an agreement reached late last year between the government, employers and unions on raising the minimum wage of skilled and unskilled workers.