Hungary’s budget deficit was shockingly high in 2023

The government’s “most important goal” this year is to kick start economic growth while reducing the budget deficit and public debt further, the finance ministry said on Tuesday.

In a preliminary reading of data, the ministry said that Hungary’s cash-flow-based budget deficit was 4,593.4 billion forints (EUR 12.1bn) at the end of December. The central budget deficit was 4,293.3 billion forints at the end of the month and the social security funds were 412.3 billion forints in the red, it added.

The ministry noted the impact on the budget of one-off transactions like the purchase of Vodafone Hungary and stakes in Magyar Posta insurance businesses.

The ministry noted that expenditures related to the regulated utilities price scheme for households had come to 1,373.5 billion forints for the full year, close to double the 699.2 billion forints in 2022.

Expenditures on compensation for suburban and long-distance public transport totalled 744.2 billion forints, 155.4 billion forints more than in 2022.

Spending on European Union-funded programmes came to 2,812.2 billion forints for the full year, while transfers from Brussels were just 2,229.2 billion forints.

Hungary’s government has been pre-financing EU-supported investments for years, a practice that impacts the cash-flow deficit, but not the accrual-based deficit calculated according to EU accounting rules.

The ministry said revenue from taxes and contributions was up by 15.2 percent from the base period.

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2 Comments

Anonymous says:

09/01/2024 at 21:15

If the Fidesz government doesn’t have money why on earth does it need to spend $900 million to take a 49% indirect stake in Vodafone Hungary?
Larry says:

09/01/2024 at 23:53

Here is the answer. The other 51% is owned by 4iG which is owned by a friend of Orban. Secondly, Vodafone will likely now be used by Fidesz to spy on Hungarians and will may give an open door to Russia in the Hungarian telecom network. Below are questions asked at the EU on this purchase.
In January 2023 a decree was passed exempting the purchase of Vodafone Hungary by local IT firm 4iG and the Hungarian government from competition scrutiny. It argued that the acquisition served ‘security of telecoms services supply’ and classed the deal as being of ‘national strategic significance’. 4iG is owned by an associate of Prime Minister Orban.
1. Seeing how, aided by the Hungarian government restrictions on 5G licensing procedures, 4iG was used in 2021 to push Digi Communications out of the market, and now is further reducing competition through the acquisition of Vodafone, what is the Commission doing to ensure that competition rules are safeguarded and that the Hungarian market is indeed open, consumers have sufficient choice and their communications are secure?
2. Since the Hungarian government has allegedly used the Pegasus spyware against opponents and journalists, and telecommunications networks have been used in the past to circulate malware on behalf of national authorities, how will the Commission ensure potential Vodafone network vulnerabilities will not be exploited for surveillance purposes, including by third countries?
3. What safeguards has the Commission asked Hungary to put in place to ensure there is no unauthorised access to data on the telecommunications networks provided by Vodafone?