Hungary’s cash-flow based general government deficit reached HUF 3,806.3bn, 90.2pc of the full-year target, a detailed report released by the Finance Ministry on Monday shows.
Hungary’s deficit dangerously high
The central budget deficit reached HUF 3,694.8bn and the social security funds were HUF 182.4bn in the red, but separate state funds had a HUF 70.9bn surplus. For the month of May alone, Hungary had a general government surplus of HUF 43.5bn. The detailed data show expenditures reached HUF 21,010.5bn, 48.0pc of the full-year target, while revenue came to HUF 17,204.2bn, 43.5pc of the target for the year.
Central budget revenue from taxes and contributions increased 6.0pc in January-May from the same period of last year. In May, revenue from corporate tax was down by HUF 55.6bn from a year earlier. PIT revenue reached HUF 2,164bn in January-May, HUF 111bn higher than in the base period. Revenue from VAT fell by HUF 55.4bn in May compared to the same month a year earlier. In January-May, revenue from VAT rose 4.0pc to HUF 3,444.4bn.
Stronger forint shaves off the debt
Transfers of European Union funding came to HUF 523.9bn in May alone. On the expenditure side, spending of budget institutions reached HUF 7,948.2bn, 58.7pc of the full-year target. Subsidies for utilities companies added up to HUF 582.9bn, 61.5pc of the target. Spending on state investments came to HUF 334.5bn, 68.8pc of the full-year target, MTI wrote.
Interest expenditures reached HUF 1,405.7bn, 42.4pc of the full-year target. Central budget debt climbed by HUF 2,556.6bn in January-May, lifted by HUF 2,762.9bn of net forint issues and HUF 1,359.2bn of net FX issues. The stronger forint shaved HUF 1,561.2bn off the debt.
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