General government budget surplus of HUF 61.4bn in October

The central sub sector of the state budget posted a surplus of HUF 61.4bn in October 2013. The cash-flow data of the central sub sector of the state budget at the end of October are in line with the Government’s prior expectations. Revenues and expenditures anticipates for this and the coming months – including the massive surplus forecast for the month of December – all confirm that this year’s below 3 percent deficit target will be attained.

In the month of October 2013, the central sub sector of the state budget registered a monthly surplus of HUF 61.4. Within that, the central state budget, Social Security Funds and extra budgetary state funds registered surpluses of HUF 24.5bn, HUF 21.6bn and HUF 15.3bn, respectively. Thus, the deficit of the central sub sector of the state budget totalled HUF 887.7bn at the end of October 2013.

For the comparison of revenues and expenditures the time gap between the two sides has to be taken into account. According to the Government’s expectations, the budget will post a significant surplus in December, which will help meet this year’s projected deficit target.

Thanks to Government measures, there have been changes which substantially influenced both the revenue and expenditure sides this year and last. With regard to revenues, revenue estimates concerning some taxes were lowered, certain taxes were abolished or modified, and new taxes were also introduced. Until the end of October 2013 – in comparison to 2012 — revenues were higher from certain taxes, such as the value-added tax, personal income tax, vehicle registration tax, the extra tax for financial institutions as well as revenues from fees and duties.