Hungary’s budget surplus is extra high because of the inflation

Hungary’s cash-flow-based budget, excluding local councils, had a 255.7 billion forint (EUR 648.8m) surplus in July, according to preliminary data released by the finance ministry.

The budget deficit narrowed to 2,636.5 billion forints from the end of June. The central budget deficit reached 2,729.5 billion forints at the end of July. The social security funds were 125.8 billion forints in the red, while the separate state funds had a surplus of 218.8 billion forints. The ministry said expenditures on health care and on pensions were higher in January-July than in the base period.

As napi.hu reported, the Hungarian government distributed 700 billion HUF before the elections. However, based on the January-July data of the Hungarian State Treasury, the state got 800 billion HUF just from VAT because of the skyrocketing inflation.

Read alsoIs the Hungarian government profiteering from the VAT on utility bills?

Source: MTI