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.

It has to be also emphasised that during the remainder of the year several large, one-off items are anticipated to be transferred to the budget, such as some HUF 100bn from the sale of frequency usage rights, the second half of the total amount of the financial transaction duty – payable in four instalments – as prescribed in June, income tax of energy services providers and a significant share of corporate income tax liabilities.

On the expenditure side, some extra costs were incurred as in several fields the responsibilities of local governments and related financing were taken over by the central sub sector of the state budget. Consequently, expenditures of the state budget were higher at the end of October, in comparison to last year. This year, expenditures relating to healthcare, welfare and other institutions – e.g.: hospitals, institutions providing disabled treatment, childcare facilities – as well as to wages of teachers within the public education system are recorded as state expenditures. In addition, railway, road transport and housing subsidies as well as expenditures relating to state property also exceeded the amount disbursed last year.

Ministry for National Economy

Photo: patriotaeuropa.hu

Source: http://kormany.hu/