Hungary general govt deficit in 2011 confirmed at 110% of modified target
Hungary had a cash flow-based general government deficit, excluding local councils, of HUF 1,734.4bn at the end of December or 110.0% of the modified full-year target, the National Economy Ministry said in a second reading of the data on Monday.
The figures were unchanged from the preliminary ones published on January 9.
The ministry said that the deficit was about 2.5 times the original target.
It noted several one-off items - adding up to HUF 1,114.6bn - that contributed to the overshoot, namely the purchase of shares of Hungarian oil and gas company MOL for HUF 498.6bn, a preliminary estimated HUF 250.0bn in VAT refunds made necessary by a decision of the European Court, a HUF 120.0bn capital raise in the state-owned Hungarian Development Bank (MFB), the takeover of HUF 50.0bn in debt from state-owned railway company MAV and the takeover of HUF 196.0bn in debt from county councils.
Excluding these one-off items, the deficit would have reached HUF 619.8bn, under the original target of HUF 687.4bn.
Including one-of items, the accrual-based general government is expected to show a surplus of HUF about HUF 976bn or 3.5% of GDP, the ministry said. Excluding one-off items, the cash flow-based data are confirmation the accrual-based deficit target of 2.94% of GDP will be met, it added.
For the full year, the central budget ran a HUF 1,718.3bn deficit and the social insurance funds were HUF 83.3bn in the red, but separate state funds had a HUF 67.2bn surplus.
General government revenue came to HUF 13,208.9bn for the year, against expenditures of HUF 14,943.3bn.
In December alone, the general government ran a HUF 486.5bn deficit. The central budget was HUF 422.1bn in the red, separate state funds had a HUF 11.4bn deficit and the shortfall was HUF 53.0bn for social insurance funds.
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