Budget deficit keeps climbing in October

Telco

Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 1,418.2 billion deficit at the end of October - amounting to 122% of the full-year target - as revenue and expenditures were "in line with expectations," the Ministry for National Economy said in a preliminary release of data on Tuesday.

Alone in the month of October, the general government ran a HUF 181.9 billion deficit, state news wire MTI reported.

The central budget ran a HUF 1,491.9 bln deficit and the social insurance funds were HUF 49.0 bln in the red for the period. Separate state funds had a HUF 122.7 bln surplus.

The ministry said the deficit was lifted by advance payments of European Union funding. Advances from the budget added up to HUF 1,702.3 bln during the period, while EU transfers came to just HUF 326.0 bln, it explained. The ministry added that revenue from payroll tax was up because of higher employment.

The 2.4% of GDP deficit target for the full year, calculated according to EU accounting rules, is "achievable with certainty," the ministry said. "The governmentʼs fiscal policy continues to be characterized by predictability and stability," it added.

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