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The improvement represents a year-on-year gain of HUF 126 billion, or roughly 0.5 percentage points of GDP.
The general government recorded a deficit of HUF 4.059 tln last year, while total debt reached HUF 64.912 tln, equivalent to 74.6% of GDP, based on data from the National Bank of Hungary. The deficit dynamics varied across subsectors: the central government ran a HUF 4.174 tln deficit, whereas local governments and social security funds posted surpluses of HUF 49 bln and HUF 66 bln, respectively. In the fourth quarter alone, the central government deficit was HUF 1.791 tln, local governments recorded a HUF 104 billion deficit, and social security funds posted a HUF 37 bln surplus.
Revenue growth outpaced expenditure increases last year. The general government collected HUF 37.082 tln, up HUF 2.706 tln (7.9%) from 2024, driven primarily by taxes on production, which rose HUF 966 bln (6.9%), including an 11% increase in VAT receipts. Social contributions rose HUF 776 bln (9.2%), while taxes on income increased by HUF 374 bln (6.1%). Other revenue streams expanded by 10.1% to HUF 584 bln.
Expenditures increased by HUF 2.580 tln (6.7%), with the largest rises seen in employee compensation (HUF 891 bln, 10.6%) and social benefits (HUF 671 billion, 7.6%). Intermediate consumption rose HUF 469 bln (6.8%), while interest payments fell by HUF 659 bln (16.6%). Gross fixed capital formation decreased HUF 246 bln (6.9%), whereas other government spending grew sharply, up 21% to HUF 1.455 tln.
In the fourth quarter of 2025, the general government deficit stood at HUF 1.858 tln, or 8.3% of GDP—HUF 79 bln higher than the same period in 2024 but slightly more favorable as a share of GDP. Revenues for the quarter rose 10.8% year-on-year to HUF 974 bln, while expenditures increased 9.8% to HUF 1.053 tln.
The preliminary data show Hungary maintaining a gradual fiscal consolidation path amid continued public investment and social spending, while keeping debt below 75% of GDP.
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