Hungary’s budget deficit over 60% in Q1, ministry confirms
The National Economy Ministry confirmed in a detailed data release on Thursday that Hungary’s cash flow-based general government budget deficit reached HUF 2,554.1bn at the end of March.
The central budget had a deficit of HUF 2,458.4bn at the end of the month and the social security funds were HUF 115.0bn in the red, but separate state funds had a HUF 19.3bn surplus.
The ministry said that the deficit reached HUF 831.2bn alone for March, exceeding the pro-rata target because of the impact of payment deadlines for some tax forms on the revenue side and significant payments for public services and support for the regulated utilities price scheme for the period covering the winter months on the expenditure side. Revenue, including that from VAT, still climbed 11.6pc from the same period a year earlier, it added.
Interest expenditures came to HUF 1,553.7bn in January-March, up HUF 312.4bn from the base period because of payouts on inflation-linked retail securities and interest payments on dollar bonds, the ministry said.
As we wrote today, property tax for foreign buyers could be imposed in Hungary
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Surprise, surprise. All the Politician chatter notwithstanding, the numbers (data and facts) are catching up, fast. The upside of the US turmoil caused by BFF Mr. Trump is that our 10 year bond rate has come down to 7 percent.
https://tradingeconomics.com/hungary/government-bond-yield
This 7 percent is still a massive amount of interest, compared to what other EU states are paying. Not a sign of how well Hungary is performing. Do scroll down for Europe.
https://tradingeconomics.com/bonds
Now for the more not-so-good news – more excess spend on the horizon, as our Politicians prepare for the election. Somehow, Christmas always comes early, around election time. “Families!”, “Pensioners!”, “Hungarians, abroad!”, “Vote Fidesz!”, “Free money!”.
But it is not free, is it?