Hungary’s public finances had a first-half surplus equivalent to 1.3 percent of GDP, calculated according to the European Union’s accrual-based accounting rules, the Central Statistical Office (KSH) said in a first reading of data on Tuesday.
The government targets an ESA public finances deficit of 1.8 percent of GDP for the full year.
In absolute terms, the H1 surplus reached 295 billion forints. It compares to a 235 billion forint deficit, equivalent to 1.1 percent of GDP, in H1 2018.
Revenue rose faster than expenditures, KSH said, explaining the improvement.
Finance ministry: Hungarian economy remains stable, deficit, public debt lower than previously projected
The finance ministry has submitted to parliament the budget bill on the implementation of the 2018 budget, the ministry said on yesterday.
The document shows that the Hungarian economy performed at above the European Union average, the deficit calculated in line with EU methodology was lower than previously projected and the public debt to GDP ratio was also lower than previously expected.
The bill on the final accounts showed that Hungary had the third highest growth rate in the EU, with 5.1 percent GDP growth. The budget deficit was 2.3 percent calculated using EU accounting rules and public debt was reduced to 70.2 percent, the ministry said.