Deficit 39% of full-year target, ministry confirms


Hungaryʼs cash flow-based general government, excluding local councils, ran a deficit of HUF 390 billion, or 39.1% of the HUF 998.4 bln full-year target, as of the end of June, the Ministry of Finance confirmed in a detailed release of data on Monday.   

The central budget deficit reached HUF 467.3 bln, while the separate state funds and social insurance funds had surpluses of HUF 61.0 bln and HUF 16.3 bln, respectively, state news agency MTI reported.

Revenue from personal income tax rose HUF 105.4 bln over the corresponding period a year earlier, while revenue from payroll tax climbed HUF 260.1 bln in the period. Revenue from VAT was HUF 397.4 bln higher, while excise tax revenue increased HUF 45.3 bln.   

Revenue was lifted by higher wages and employment, which, together with tax preferences, have boosted consumption, the ministry said. Government measures to improve tax compliance were also a factor, it added.

The government continued to pre-finance European Union-funded projects, paying out HUF 710.6 bln to recipients, while EU transfers came to HUF 346.6 bln for the period. The funding supported projects undertaken within the framework of the Modern Cities Program, railway upgrades, tourism investments, and efficiency-boosting capital expenditures at businesses. 

The deficit target of 1.8% of GDP for 2019, calculated using the EUʼs accrual-based methodology, is "realistic and achievable," the ministry said.

"The general government is characterized, as before, by stability and growing revenues as a result of the disciplined budgetary policy of the government and favorable economic processes," it added.


Poland Inflation Surges in February  Figures

Poland Inflation Surges in February 

Parliament Negates Mandatory Membership in MOK Parliament

Parliament Negates Mandatory Membership in MOK

Civita Group Inaugurates HUF 2.5 bln Pasta Plant Manufacturing

Civita Group Inaugurates HUF 2.5 bln Pasta Plant

Kinizsi Castle Reopens in Nagyvázsony History

Kinizsi Castle Reopens in Nagyvázsony


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.