Only once in 22 years has the October general government deficit been bigger than now

The Finance Ministry released preliminary data on Monday showing that Hungary’s cash flow-based general government deficit reached EUR 7.45bn (HUF 3,050.5bn) at the end of October.

At the end of the month, the central budget had a deficit of EUR 7.44bn (HUF 3,048.5bn), the social security funds were HUF 199.0bn in the red, and separate state funds were HUF 197.0bn in the black.

Alone in October, the general government deficit came to EUR 1,04bn (HUF 427.0bn).

“The impact of unfavourable circumstances in the global economy can be felt in Hungary’s economic performance,” the ministry said.

“After a temporary slowdown, Hungary’s economy will be on a sustained growth path and could be at the forefront in the European Union growth ranking in 2025, providing the foundation for a strengthening fiscal balance,” it added.

Interest expenditures came to HUF 3,198.5bn in January-October, climbing by HUF 899.6bn from the base period, the ministry said, noting that the fall in forint interest rates started in 2023 was showing up in cash flow-based interest expenditures with a delay.

It added that interest expenditures will show a “clear decline” from 2025.

Budget spending on EU-supported projects reached HUF 1,299.6bn in January-October, while transfers from Brussels reached just EUR 2.44bn (HUF 999.8bn).

The ministry reaffirmed the government’s commitment to improving balance indicators and bringing the general government deficit down to 4.5pc in 2024, 3.7pc in 2025 and to under 3pc in 2026.

As we wrote today, Hungary’s 2025 economic action plan unveiled, €9.8 billion to counter economic downturn

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