Hungary posts EUR 389.7m deficit at the end of April, 10.41 pc / FY target, says ministry

Budapest, May 8 (MTI) – Hungary’s cash flow-based budget, excluding local councils, ran a 121.5 billion forint (EUR 389.7m) deficit at the end of April, preliminary data released by the economy ministry on Monday show.

The deficit reached 10.41 percent of the 1,166.4 billion forint full-year target.

The central budget had a 100.3 billion forint deficit and the social insurance funds were 61.1 billion forints in the red at the end of April. Separate state funds ran a 39.9 billion forint surplus.

Alone in the month of April, the budget ran a 76.6 billion forint surplus.

The ministry noted that the deficit for the first four months was below the 144.9 billion forint deficit in the base period.

Higher wages, the result of an agreement reached between the government, employers and unions late last year, boosted payroll tax revenue and through consumption VAT revenues, it said. Budget revenue was also lifted by whitening of the economy and by one-offs, such as the sale of state-owned farm land. EU expenditures related to chapter based allocations were especially higher compared to last year’s base period.

The 2.4 percent-of-GDP deficit target for the full year “can be safely achieved”, the ministry added.

Source: MTI