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Hungary gen gov't deficit almost 90% of full-year target in Q1

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Hungary's the general government, excluding local councils had a cash flow-based deficit of HUF 517.5 billion in the first three months of 2012 or 89.8% of the target for the full year, the National Economy Ministry said on Thursday.

The respective annual deficit target is HUF 576.2 billion under the central budget act.

In March alone, the general government, excluding local councils -- the central government -- recorded a deficit of HUF 230.9 billion.

The Q1 deficit was down from HUF 742.1 billion in Q1 2011 but the March deficit was up from HUF 182.4 billion one year earlier.

In March net interest rate expenditure showed the largest increase yr/yr, rising HUF 30.4 billion to HUF 79 billion.

The ministry noted that this year's central government expenditure includes as new expenditure the wages and other spending of institutions transferred from county governments to the state starting this year.

Adjusted for one-off items -- the ministry considers the revenue from the extraordinary bank levy and the sectoral or "crisis taxes" as one-off items -- the three-month deficit reached HUF 568.2 billion or 61.9% of the adjusted annual target, the ministry said.

The extraordinary bank levy and the sectoral or "crisis taxes" are targeted to bring in HUF 342 billion combined in the full year.

The central budget had a HUF 235.5 billion deficit in March, the social security funds registered a HUF 3.6 billion deficit and the separate state funds had a HUF 8.2 billion surplus last month.

In the first three months, the central budget had a deficit of 554.8 billion, reaching 93.4% of the respective full-year target. The social security funds registered a deficit of HUF 5.8 billion or 16.4% of the respective annual target. The separate state funds had a surplus of HUF 43.1 billion in January-March or 81.5% of their annual target.

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