Hungary’s cash flow-based budget deficit close to EUR 6.9bn at end-April

Hungary’s cash flow-based budget deficit, excluding local councils, reached 2,635.6 billion forints (EUR 6.9bn) at the end of April, the finance ministry said in a preliminary release of data on Monday.

The central budget deficit reached 2,669.7 billion forints at the end of April. The social security funds were 18.7 billion in the red, while the separate state funds had a surplus of 52.8 billion forints.

The deficit widened from 2,309.4 billion forints at the end of March.

The full-year cash flow-based general government deficit target is 3,152.7 billion forints.

The ministry reiterated the government’s commitment to “improving balance indicators” in the release.

“In the unpredictable global economic environment caused by the war, Hungary’s stability must be preserved,” it said.

The ministry affirmed it expects the accrual-based general government deficit, relative to GDP, to reach 4.9 percent this year, while the year-end state debt ratio declines to 76.1 percent.

It calculates with GDP growth of 4.3 percent.