Finance Ministry: Hungary’s budget to guarantee protection of pensions, family subsidies

In spite of unfavourable external factors resulting from the war, Hungary’s economy has returned to a growth path. “Even under great pressure, the Hungarian budget will guarantee the protection of pensions and family subsidies, as well as ensure the resources necessary to maintain reduced utility prices,” the finance ministry said in a detailed reading of data on Monday.

The budget deficit reached 107.8 billion forints for June alone which is the best indicator for the sixth month in 22 years, the ministry said in a statement.

Hungary’s cash flow-based budget deficit reached 2,656.4 billion forints (EUR 6.8bn) at the end of June. The ministry said that social security funds were 161.9 billion in the red, but separate state funds were 145.6 billion forints in the black.

Interest expenditures, which included large payments on retail government securities, came to 2,009.5 billion forints in January-June, up 649.4 billion from the same period a year earlier, it said.

Expenditures for European Union-funded programs reached 945.7 billion forints, while transfers from Brussels reached 578.2 billion forints, it added.

The ministry affirmed the government’s commitment to improving balance indicators. It said strengthening economic performance and improving fiscal trends would also help achieve the 4.5 percent of the GDP budget deficit target.