Hungarian government achieves fiscal balance stabilization this year
The Finance Ministry released preliminary data on Monday showing that Hungary’s cash flow-based general government deficit reached EUR 8bn (HUF 3,284.3bn) at the end of November.
At the end of the month, the central budget had a deficit of HUF 3,257.5bn, the social security funds were EUR 0.55bn(HUF 226.8bn) in the red, and separate state funds were HUF 200.0bn in the black.
Alone in November, the general government deficit came to HUF 233.8bn.
“The government has stabilised the fiscal balance this year while closely following the development of the deficit,” the ministry said. “The government remains committed to improving balance indicators while putting the economy on the sustainable growth path,” it added.
The ministry said interest expenditures reached HUF 3,412.7bn in January-November, climbing by HUF 798.1bn from the base period. It noted that the fall in forint interest rates started in 2023 was delayed in showing up in cash flow-based interest expenditures.
It added that accrual-based interest expenditures will decline substantially in 2025.
The ministry reaffirmed the government’s commitment to reducing the general government deficit to 4.5 percent in 2024, 3.7 percent in 2025, and under 3 percent in 2026.
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