Hungary’s budget deficit, excluding local councils, was 1,837 billion forints (EUR 5.24m) at the end of June, the Finance Ministry confirmed on Wednesday.

The deficit ballooned due to coronavirus spending, economic recovery and pre-financing for projects funded by the European Union, the ministry said.

The central budget posted a deficit of 1,534.3 billion forints while the shortfall related to social insurance funds was 313.9 billion. Separate state funds registered a 11.2 billion surplus.

Spending on personal protective equipment and ventilators came to 520 billion forints. Pre-funding for EU projects amounted to 1,085.1 billion forints in the first half, as against Brussels payments of 489.5 billion.

The ministry said the budget would provide all the resources needed for coronavirus-related measures and economic revival.

In June alone, the deficit widened by 785.5 billion forints.

Central budget revenue came to 1,119.2 billion forints, 2.2 percent less than in the same month a year earlier, while spending shot up 28.4 percent to 1,743.4 billion.

Spending of the National Employment Fund increased by 72.4 percent to 51.5 billion forints.

Source: MTI

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