Deficit 2% of GDP in 2017, preliminary data shows
The deficit of the general government sector in 2017 was HUF 746.3 billion, equivalent to 2% of GDP, according to a first release of preliminary data from the Central Statistical Office (KSH). The balance deteriorated by HUF 156.9 bln, or 0.3 of a percentage point, as a proportion of GDP compared to 2016.
The KSH reported the data to Eurostat, the EUʼs statistical office, in compliance with the regulation on the Excessive Deficit Procedure (EDP), and according to the methodological requirements included in the European System of Accounts (ESA 2010).
In 2017, the preliminary KSH figures show that revenues of the general government sector amounted to HUF 17,008.4 bln, while expenditures totaled HUF 17,754.7 bln.
The deficit of the general government sector was thus HUF 746.3 bln - or HUF 754.4 bln not including Eximbank, which is included in the main calculations from this year, in line with a decision by Eurostat. Both values represent 2.0% of GDP.
Revenues grew by HUF 1,115.6 bln, or by 7.0%. Taxes on production increased by HUF 458.1 bln (by 7.1%), within which VAT revenues rose by HUF 328.0 bln (by 9.9%). Revenues from taxes on income were HUF 203.4 bln (7.7%) higher than a year earlier. Social contributions increased by HUF 76.6 bln (by 1.6%). Other revenues went up by HUF 375.9 bln, or by 18.7%, mainly as a result of a significant growth in EU transfers.
Expenditures increased by HUF 1,272.4 bln, or by 7.7%. The growth in the case of paid compensation of employees was HUF 271.0 bln (7.0%), and HUF 140.5 bln (3.1%) regarding social benefits other than social transfers in kind. Gross fixed capital formation rose by HUF 591.0 bln (by 53.9%) and intermediate consumption by HUF 266.0 bln (by 10.8%). Other expenditures increased by HUF 78.7 bln (by 2.3%). At the same time, interest expenditures of the general government sector decreased by HUF 74.8 bln (down 6.5%).
Bulk of deficit increase in Q4 2017
In the fourth quarter of 2017 compared to the same period of 2016, the deficit of the general government sector was HUF 619.4 bln, representing 6.3% of quarterly GDP; this was HUF 161.5 bln, or 2.4 percentage points, more favorable than one year earlier.
Revenues increased by HUF 456.1 bln, or by 10.4%, while expenditures were HUF 294.6 bln (5.7%) higher than a year earlier.
As reported Tuesday, the debt of the general government sector – based on data from the National Bank of Hungary (MNB) – was HUF 28.096 trillion, 73.6% of GDP, at the end of 2017; without Eximbank, the figure was HUF 27.36 tln, 71.7% of GDP.
Figures for the balance of the general government sector in the first quarter of 2018 will be published by the KSH on July 2.
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