Hungary’s general government deficit exceeded the targeted 3.8% of GDP in 2010 as a result of a higher-than-expected fourth-quarter local council deficit and statistical methodology related corrections, the National Economy Ministry said on Friday.
The Central Statistics Office (KSH) said on Friday that the accrual-based, ESA deficit was HUF 1,153 billion or 4.3% of GDP last year, up from the target and down 0.2 percentage points of GDP from 2009.
Local councils generated an unexpectedly high deficit of HUF 150 billion in the fourth quarter of 2010, bringing their entire-year deficit of 2010 to HUF 247 billion, well above the HUF 190 billion projection for the year.
Local elections were held in Q4 last year, on October 3.
As the combined deficit of local councils was HUF 97 billion in the first three quarters, the ministry saw no need to amend its projection even in December, it said. Although the fourth quarter traditionally brings high deficit with local councils, such a big jump could not be realistically expected, the ministry said.
Local councils reported a preliminary HUF 247.7 billion cashflow-based annual deficit for 2010 in January.
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