Hungary’s budget deficit in the first half of 2022 revealed

Hungary’s cash flow-based budget deficit, excluding local councils, reached 2,892.3 billion forints (EUR 7.1bn) at the end of June, the finance ministry said in a first reading of data on Friday.

“In the current, unpredictable global economic environment, the result of the protracted Russia-Ukraine war and sanctions by Brussels, the government’s goal remains clear: to preserve Hungary’s stability, and to protect the utilities price cuts, family support, pensions and full employment,” the ministry said.

“Additionally, maintaining disciplined fiscal policy is of key importance. To that end, the government is standing by its 4.9 percent budget deficit target for this year and will continue to reduce state debt,” it added.

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The central budget deficit reached 3,040.7 billion forints at the end of June. The social security funds were 26.8 billion in the red, while the separate state funds had a surplus of 175.2 billion.

The deficit widened from 2,737.0 billion forints at the end of May. The full-year cash flow-based budget deficit target is 3,152.7 billion forints.