Fiscal Council evaluation of first-half budget trends positive

Budapest, September 20 (MTI) – Hungary’s Fiscal Council delivered a positive assessment of budget trends in the first half of the year in an opinion published on Tuesday.

Budget revenue and expenditures were in line with the pro-rata targets in the first half, the council said.

The rate of economic growth is likely to continue at the earlier pace, after a slowdown in Q1, and full-year growth “could approach” the 2.5 percent target in the budget.

Budget revenue, especially revenue from tax and contributions, is on steady footing, while spending targets remain under control, thus the budget deficit target of 2 percent of GDP is achievable, the council said, adding that there was even “room for manoeuvre available”.

Year-end public debt as a percentage of GDP is expected to decline year on year, in line with the constitution.

The council said the collection of state revenue had become more efficient and expenditures were within targets.

Hungary’s financial vulnerability has been further reduced, a trend that creates favourable conditions for further improvements to the country’s sovereign rating, it added.

Source: MTI