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General government deficit reaches HUF 511.1 bln in May

Hungaryʼs cashflow-based general government deficit, excluding local councils, reached HUF 511.1 bln at the end of May, the National Economy Ministry said in a preliminary report on yesterday.

The deficit reached 58.25% of the HUF 877.4 bln full-year target, Econews calculated.

The ministry noted that the deficit had reached HUF 681.7 bln at the end of May last year.

The central budget deficit came to HUF 588.5 bln for January-May. The social insurance funds and separate state funds had surpluses of HUF 47.0 bln and HUF 30.4 bln, respectively.

The ministry noted that the deficit is front-loaded, as usual, with expenditures exceeding revenue in the first half of the year. It attributed the favourable balance at the end May to higher tax revenue thanks to economic growth as well as a favourable interest balance and stronger tax compliance.

In May the general government had a monthly surplus of HUF 98.7 bln compared to a HUF 269.4 bln surplus in May 2014. The decrease is mostly due to the difference in EU fund allocations.

Revenues from EU sources in May fell by HUF 70 bln compared to last year and chapter administered allocations rose by HUF 140 bln.

The ministry confirmed the full-year deficit target of 2.4% of GDP, calculated according to European Union rules.