Deficit 106% of full-year target at end of September

Telco

Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 1,236.3 billion deficit at the end of September, the Ministry for National Economy confirmed in a second reading of data released Thursday. The deficit thus reached 106% of the HUF 1,166.4 bln full-year target, state news wire MTI reported.

In line with preliminary figures released on October 5, the central budget had a HUF 1,281.2 bln deficit and the social insurance funds were HUF 62 bln in the red at the end of September. Separate state funds ran a HUF 106.9 bln surplus. 

In the month of September alone, the general government ran a HUF 256.4 bln deficit.

The ministry noted that the deficit for the first nine months was HUF 271.6 bln in the base period. 

According to the ministry, in January-September advanced payments from domestic funds for EU tenders raised spending, as these reached HUF 1,484.3 bln, compared to the HUF 1,035.3 bln expenditure in the base period. Payments made by the EU this year to cover tenders and spending from cohesion funds have only reached HUF 297.5 bln so far.   

VAT repayments for "trustworthy taxpayers" also raised expenditures as the tax authority had to make payments faster than before because of new legislation. 

On the revenues side, income from VAT, personal income tax and social security payments with healthcare contributions and payroll tax were higher than in the base period. 

Total revenues for January-September 2017 amounted to HUF 13,007 bln, while expenditure totaled HUF 14,243 bln.

Corporate tax income in January-September was HUF 341.5 bln, down by HUF 46.7 bln compared to the first nine months of 2016.    Income from value-added tax stood at HUF 2,481.1 bln, up by HUF 62.1 bln. Income from excise tax, at HUF 743.6 bln, was up by around HUF 1.3 bln. 

Income from tax on financial transactions was up HUF 9.3 bln at HUF 161.3 bln, while income from the special bank levy was down at HUF 51.9 bln, from HUF 53.9 bln previously. 

Revenues from personal income tax were up HUF 148.8 bln to HUF 1,418.7 bln. Higher wages helped lift revenue.

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