Hungarian government created a large deficit

The deficit in the Hungarian government sector increased sharply in the third quarter of last year. This is shown by data from the Hungarian Central Statistical Office (KSH). The reason is that the increase in spending outpaced the rise in revenues.

Between July and September last year, the government ran a deficit of more than HUF 930 billion (EUR 2.3 billion). This was 5.4 percent of GDP, Portfolio reports, substantially higher than the deficit figures for the first two quarters.

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The huge deficit reported today breaks a positive trend that was also supported by the first half of last year. The 4 quarter rolling deficit could not be reduced further.

In the third quarter, government sector revenue climbed by 20.3 percent to HUF 6,724.0 billion (EUR 16.67 billion) and expenditures increased by 22.3 percent to HUF 7,655.7 billion (EUR 18.97 billion).

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Source: Portfolio.hu, MTI