Budget deficit 78 pc of full-year target in June

Hungary’s cash flow-based budget deficit reached 911.2 billion forints at the end of June, 78.1 percent of the full-year target, the economy ministry confirmed in a second reading of data on Thursday.

The deficit does not include the balance of local councils.

The central budget ran a 902.4 billion forint deficit and the social insurance funds were 110.5 billion forints in the red at the end of June. The separate state funds had a 101.7 billion forint surplus.

In June alone, the central budget ran a 697.9 billion forint deficit.

The deficit at the end of June was 402.1 billion forints higher than twelve months earlier.

The ministry said the deficit was lifted by advance payouts of European Union funding from national coffers, home construction subsides and interest payments due in June on a number of government bond series.

On the revenue side, the balance was lifted by personal income and payroll tax as well as the small business tax.

The full-year deficit target of 2.4 percent of GDP, calculated according to EU accounting rules, can be “safely achieved”, the ministry said.

Source: MTI