Budget deficit close to record levels in Hungary, yet the government says “finances are in order”
Hungary’s general government deficit reached HUF 2,786.4bn at the end of July, 58.4pc of the full-year target, the National Economy Ministry said in a preliminary release of data on Friday.
The central budget gap reached HUF 2,779.9bn, and the social insurance funds were HUF 95.6bn in the red, but separate state funds had a surplus of HUF 89.1bn. Alone in the month of July, the general government deficit came to HUF 12.8bn.
Interest expenditures came to HUF 2,726.3bn in January-July, HUF 509.3bn more than in the base period. Revenue from tax and contributions climbed 8.6pc. Revenue from taxes on consumption rose about 9pc. Expenditures on transportation and public utilities reached HUF 1,561.6bn, up HUF 234.6bn from the same period a year earlier.
“Hungary’s finances are in order and the budget remains on stable footing,” the ministry said. “The government is implementing Europe’s biggest tax reduction programme, while holding to its commitment to fiscal discipline and to reductions in state debt and deficit levels,” it added.
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