Hungary 2018 budget deficit 2.2 pc of GDP, under target

Hungary’s budget deficit, calculated according to the European Union’s accrual-based accounting rules, came to 2.2 percent of GDP last year, the Central Statistical Office (KSH) said on Monday.

Hungary’s government had targeted an ESA 2010 deficit of 2.4 percent of GDP. The government’s deficit target for 2019 is 1.8 percent of GDP.

In absolute terms, the deficit reached 934 billion forints (EUR 2.9bn).

The data show general government revenue rose by 8.5 percent to 18,617 billion forints, while expenditures increased by 8.6 percent to 19,551 billion forints.

On the revenue side, taxes on production rose by 11.8 percent or 811 billion forints, while revenue from taxes on income grew by 2.5 percent or 72 billion forints. Social contributions were up by 5 percent, or 243 billion forints. Other revenues were up by 13.3 percent, or 335 billion forints, mainly because of significant growth in EU transfers, KSH said.