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ÁSZ: Deficit target high, but revenue target achievable

Telco

The target for the structural deficit in the Hungarian governmentʼs 2017 budget bill is higher than the medium-term objective, which is inconsistent with achieving the mid-term fiscal deficit target, however, this does not pose a risk to the implementation of the budget, Hungaryʼs State Audit Office (ÁSZ) said, according to news agency MTI .

The macroeconomic projections and revenue targets in the governmentʼs 2017 budget bill are achievable, ÁSZ said today in an opinion on the draft legislation. 

According to ÁSZ, the revenue target is 99.9% “well-founded” and 0.1% “partially sound”, MTI reported. ÁSZ termed the expenditure target 99.2% “well-founded”, 0.5% “partially sound” and 0.3% “unsound”. ASZ said HUF 5.6 billion of budget revenue is “at risk" and established that a number of expenditures exceed the target by HUF 62.7 bln. These extra expenditures can be covered by reserves, it added.

Multiple reserves and the governmentʼs expanded power to reallocate resources improve the security and flexibility of implementing the budget and the management of risk, ÁSZ said according to MTI. The division of revenue and expenditures into categories affecting operations as well as state- and EU-funded investments makes the budget more transparent, it added. ÁSZ said it is a general risk that 53.3% of expenditures are of the kind that may be exceeded without any budget amendment.

According to ÁSZ, the bill complies with constitutional rules on state debt and – with a single exception – fiscal rules

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