State-owned assets generate almost HUF 70 bln of revenue in 2012
State-owned assets generated budget revenue of HUF 69.8 billion in 2012, but were still well under expenditures on the assets, detailed data published by the National Economy Ministry show.
More than 45% of the revenue or HUF 32.2 billion was from dividend paid on company stakes held by the state. Oil and gas company MOL, in which the state holds almost 25%, paid its biggest owner HUF 10.1 billion. The state-owned Hungarian Electricity Works (MVM) paid a HUF 10 billion dividend and state lottery company Szerencsejatek paid dividend of HUF 7.8 billion.
Rental fees for state-owned farm land came to HUF 8.7 billion last year. Fees for use of other state assets brought in HUF 3.4 billion and concessions fees generated HUF 3.7 billion. Revenue from sales of assets reached HUF 11.5 billion, including HUF 10.6 billion from the sale of emissions units. Total revenue from state assets was almost HUF 20 billion over the respective target. Expenditures on state-owned assets far exceeded revenue, coming to HUF 137.4 billion for the year, exceeding the target by about HUF 10 billion.
Almost HUF 62 billion of the amount was related to capital formation, including HUF 40.3 billion used for capital raises and acquisitions. It raised capital at national infocommunications company Nemzeti Infokommunikációs by HUF 21.4 billion to cover the cost of acquisitions. The National Infrastructure Development Company (NIF) got a HUF 10 billion capital injection and former units of national carrier Malév, which went bust early in the year, got HUF 5.0 billion.
Purchases of real estate and related developments cost the state HUF 8.9 billion last year. The state spent HUF 8.8 billion in 2012 to buy out public private partnerships. Expenditures related to the use of state-owned assets reached HUF 25.1 billion, including HUF 11.1 billion paid on life annuities from the National Land Fund. Upkeep costs reached HUF 3.6 billion. Support for state-owned companies added up to HUF 9.2 billion, including HUF 5.7 billion for the National Film Fund Company. Spending on environmental projects related to the earlier sale of state-owned assets came to HUF 16.4 billion. Some HUF 10.3 billion was booked for interest paid on bonds issued by the Hungarian National Asset Management Company.
In 2011, revenue from state-owned assets was HUF 40.0 billion. Expenditures on the assets came to HUF 633.3 billion, an amount that includes the state's purchase of a 21.2% stake in MOL for €1.88 billion from Russian energy company Surgutneftegas.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.