Budget deficit reaches HUF 2,737 bn at end-May

Hungary’s cash flow-based budget deficit, excluding local councils, reached 2,737.0 billion forints (EUR 7.0bn) at the end of May, the finance ministry said in a first reading of data released on Thursday.

The ministry said the drawn-out war in Ukraine and the European Union’s sanctions policy had created an “uncertain global economic environment”.

“The government aims to preserve Hungary’s stability and maintain a disciplined fiscal policy while protecting the household utility price caps, family subsidies and pensions,” the statement said.

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“To achieve that goal, the government is standing by the 4.9 percent fiscal deficit target and continuing to reduce state debt,”

it said. The central budget deficit reached 2,879.0 billion forints at the end of May. The social security funds were 8.6 billion forints in the red, while the separate state funds had a surplus of 150.6 billion.

The deficit widened from 2,635.6 billion forints at the end of April.

The full-year cash flow-based budget deficit target is 3,152.7 billion forints.