The finance ministry released its first data on Tuesday: Hungary’s cash-flow budget deficit was 2,321.4 billion forints at the end of March.

At the end of the month, the central budget had a shortfall of 2,338.3 billion, while social security funds were 61.7 billion in the red. Separate state funds showed a 78.6 billion surplus.

The budget posted a deficit of 1,704.0 billion at the end of February.

The ministry said that interest spending, including large payments on retail government securities, came to 1,241.3 billion forints in January-March, up 604.0 billion from the same period a year earlier. Spending on maintaining the regulated utilities price system for households reached 461.3 billion, it added.

Budget deficit targets have changed

“The government’s goal is to put the economy on a path of sustainable growth while continuing to reduce budget deficit and state debt levels,” the ministry’s statement said. It added that the government targets a budget shortfall of 4.5 percent of GDP in 2024, 3.7 percent in 2025, and a 2.9 percent deficit in 2026.

By comparison, this year’s deficit target was initially set at 2.9%. However, the Government continues to repeat that it will reduce the budget deficit and public debt.

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