Orbán cabinet miscalculated by EUR 3.1 billion, budget deficit has become brutal in 2023

Hungary’s cash-flow-based budget deficit came to 4,593.4 billion forints at the end of December, the Finance Ministry confirmed in a detailed reading of data published Monday.

The central budget deficit was 4,293.3 billion forints at the end of the month and the social security funds were 412.3 billion in the red. Separate state funds posted a 112.3 billion surplus.

The general government deficit widened from 4,074.3 billion forints at the end of November, but the ministry noted that the full-year gap was below 4,672.1 billion forints the previous year.

The ministry said the war, the energy crisis resulting from sanctions policies, and the high-risk global economic environment had put the budget under “significant pressure”. In spite of the unfavourable circumstances, the budget ensured the preservation of the value of pensions, and the continuation of family subsidies and the regulated utilities price scheme for households, it added.

The ministry noted that expenditures related to the regulated utilities price scheme for households came to 1,373.5 billion forints in the full year, close to double the 699.2 billion in 2022.

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Spending on European Union funded programmes came to 2,812.2 billion forints in the full year, while transfers from Brussels were worth 2,229.2 billion.

The ministry said revenue from taxes and contributions was up 15.2 percent from the base period.

The finance ministry earlier estimated the accrual-based ESA general government deficit reached 5.9 percent of GDP last year.