Hungary aims to reduce deficit with new fiscal measures, reports finance ministry
In a detailed report on the general government balance released on Monday, the Finance Ministry said the government remained committed to improving balance indicators.
The ministry noted that measures taken in the spring had improved the fiscal room for manoeuvre by over HUF 1,000bn (EUR 2.53bn) and pointed to monthly budget surpluses on two occasions since. The ministry acknowledged the impact of seasonal trends on the August balance and said the scale of the deficit would return to a downward path afterward.
“The government is following closely the development of fiscal indicators and will take further measures to achieve the deficit target if necessary,” it added.
The preliminary report shows that Hungary’s cash flow-based general government deficit widened to HUF 2,857.7bn (EUR 7.24bn) at the end of August. The central budget had a deficit of HUF 2,862.1bn at the end of the month, and the social security funds were HUF 168.4bn in the red, but separate state funds were HUF 172.8bn in the black.
The ministry said the HUF 414.3bn (EUR 1.05bn) deficit for the month of August alone was affected by the seasonality of tax revenue, especially from VAT. At the same time, monthly payouts of family support were doubled, while spending on roads and public transportation also rose from the same period a year earlier, it added.
Interest expenditures in the year to the end of August reached HUF 2,413.8bn, HUF 695.5bn more than in the base period.
Central budget payouts for European Union-funded projects came to HUF 1,086.3bn during the period, while transfers from Brussels reached just HUF 673.8bn.
“The government is committed to reducing the deficit and state debt levels,” the ministry said, affirming general government deficit targets, relative to GDP, of 4.5pc for 2024, 3.7pc for 2025 and under 3pc for 2026.
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3 Comments
The “interest expenditures” line item is the elephant in the room – we started our spectacular ascent in 2021 (toggle view to “all”):
https://www.barrons.com/market-data/bonds/embmkhu-10y?countrycode=bx
Our Politicians are doing so well for The People that only Romania has a higher 10 year bond rate than Hungary #noendinsight
https://www.ecb.europa.eu/stats/financial_markets_and_interest_rates/long_term_interest_rates/html/index.en.html
The Real Person!
The Real Person!
Morgan Stanley warns of forint slide with target at 410 per euro. They see too much economic risk in Hungary with growth forecasts being cut.
https://www.bnnbloomberg.ca/investing/2024/09/23/morgan-stanley-warns-of-forint-slide-on-hungarian-economic-risks/
The Real Person!
The Real Person!
Propaganda CRAP – from a Ministerial Department headed by the absolute DUD of a Finance Minister in Mihaly Varga, being LAUGHED at in Brussels in the role he is playing through the 6 months Hungary has the PRESIDENCY.
Varga, what he has proposed in “Draft” of the European Union Budget in 2025 – in the “Speakeasy” Bars of Brussels, the “off the record” social bars, just being laughed at and thought of no respect for any real Economic & Financial capabilities.
Varga – in his Ministerial Role of the Hungarian Finance Minister – commencement 2012 – his “Curriculum Vitae” – has been a Total cataclysmic DISASTER – that CONTINUES.
Albert Einstein couldn’t have been of GREATER accuracy in FAMOUS quote of his – that just FILLS / FITS entirely the name – Mihaly Varga – to it’s fullest.
Einstein said :
” We can’t SOLVE today’s problems with the MENTALITY that created them.”
Mihaly Varga, the Ministry of the Orban Fidesz Hiungarian Government he Heads – that the “BRAWL” between the Governor – of the Central Bank of Hungary and the Orban / Varga – the BROAD difference of opinion(s) – in the economic & financial policies – management of Hungary, are seen by the Central Bank of Hungary, as being “Ill-Fated” – wrongful for the FUTURE of Hungary.
RESPECT of any WORTH – for Mihaly Varga and the Finance Ministry of Hungary – non EXISTANCE that WORSENS – the deeper the BLACK Hole Hungary descends out of the Policies created and put in place by the “Dud” of a Finance Minister – Mihaly Varga jointly signed by the current Prime Minister of Hungary – the “infamous” – Victor Mihaly. Orban.