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Huge deficit in the Hungarian government sector in first quarter
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The deficit-to-GDP ratio was almost 10 percent in the first quarter. Hungary’s government sector had a HUF 1,728 billion deficit in the first quarter, equivalent to 9.8 percent of GDP, according to preliminary data released by the Central Statistical Office (KSH) on Tuesday.
Government sector revenue rose by 9.2 percent to HUF 7,210 billion, while expenditures grew by 26.5 percent to HUF 8,938 billion. Revenue from taxes on production and imports increased by 15.6 percent to HUF 3,071 billion.
Guest nights rise 3.8 percent in May
Guest nights spent in commercial and private tourism accommodation in Hungary were 3.8 percent up in May year on year, the Central Statistics Office (KSH) said on Tuesday.
Whereas the number of guest nights spent by domestic travellers dropped by 4.1 percent to 1,580,000, nights spent by foreign visitors grew by 13.3 percent to 1,550.000.
Revenue of commercial accommodations rose by 31 percent to HUF 49 billion.
In the January-May period, the number of guest nights increased by 2 percent year on year to 11,995,000. The number spent by domestic travellers fell by 7.3 percent to 5,903,000, while those spent by foreign visitors increased by 13.1 percent to 6,091,000.
Szijjártó: Hungary exports hit record high in Q1
Hungary’s exports totalled over EUR 50 billion in the first four months, an all-time record following a 12 percent increase from the record set last year, Foreign Minister Péter Szijjártó said on Tuesday.
The ministry cited Szijjártó telling the opening event of the foreign economy meeting in Budapest that the record was expected to be broken once again this year.
Noting that Hungary is a small country with few energy resources, while exports have a fundamental influence on its economic performance, he said a priority of foreign policy was to continually increase Hungarian economic performance abroad and help Hungarian companies to enter as many markers as possible.
What: A bloated, inefficient, smug, unproductive public sector is a drain on the country’s resources?! No way!! Surely the best solution is to throw even more taxpayers’ money at it. That always works! The answer is never, EVER!, to decrease the sector, reform it to be more efficient and accountable, and tell the employees “Look, you are working here because you believe in serving the public; that’s your main source of satisfaction; if you want higher salaries, go work in the private sector or start a business of your own!”
660 billion forints of the 1,728 billion (35%) is due to the completely unnecessary government purchase of Vodaphone Hungary in Jan which was made to allow more government control Hungarian use of information through the internet. Hungarians will now pay for this as the government makes cuts to social programs as a result.