Hungary’s cash flow-based budget, excluding local councils, ran a 1,418.2 billion forint (EUR 4.5bn) deficit at the end of October, the Economy Ministry confirmed in a second reading of data released Tuesday.

The deficit reached 121.6 percent of the 1,166.4 billion forint full-year target.

In the month of October alone, the shortfall amounted to 181.9 billion forints.

The ministry said the ten-month deficit this year was lifted by government payments in advance of European Union funding. The advances from the budget added up to 1,702.3 billion forints during the period, while EU transfers came to just 326 billion, it noted.

The ministry added that revenue from payroll tax, VAT, personal income tax and health-care contributions were up due to higher employment.

“The government’s fiscal policy continues to be characterised by predictability and stability,” and revenues and expenditures are progressing “as planned,” it added.

The full-year deficit target of 2.4 percent of GDP, calculated according to EU accounting rules, is achievable, the ministry said.

Source: MTI

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