Budget deficit HUF 823.3bn, 92.3 pc of full-year target in June
Budapest (MTI) – Hungary’s cashflow-based public finance deficit, excluding local councils, came to 823.3 billion forints (EUR 2.6bn) by the end of June, the economy ministry said on Tuesday.
The deficit stood at 92.3 percent of the full-year target in June.
The deficit was over the 813.7 billion forint gap at the same time a year earlier, a difference the ministry attributed mainly to developments related to European Union funding.
The central budget deficit came to 868.1 billion forints during the period, while the social insurance funds and separate state funds had surpluses of 15.0 billion forints and 29.8 billion forints respectively.
The ministry noted that the deficit is front-loaded, as usual, with expenditures exceeding revenue in the first half of the year. It said that economic growth had raised tax revenue during the period, adding that higher wages had boosted payroll tax revenue, while measures to improve tax morale, such as connecting tills directly to the tax office, had been successful.
For the month of June, the deficit came to 312.2 billion forints. The gap was well over the 132 billion forint deficit in the same month a year earlier, but the ministry noted that interest expenditures were up almost 60 billion forints for the month, which can be explained by differences between the timing of interest payments during the year.
The ministry reaffirmed the full-year deficit target of 2.4 percent of GDP.
It is expected that the new regime will shrink the sector’s external debt by 2-3 billion euros to 6-7 billion by the end of 2016, the bank said.
Source: http://mtva.hu/hu/hungary-matters
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