Deficit approaching full-year budgeted amount
Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 979.9 billion deficit at the end of August, 84% of the full-year target, a second reading of data from the Ministry for National Economy confirmed Thursday. The ministry stated that the deficit target of 2.4% of GDP can still be safely achieved.
The headline figure is the same as that released in a preliminary reading of data on September 7.
The deficit reached 84% of the HUF 1,166.4 bln full-year target. The central budget had a HUF 1,019 bln deficit and the social insurance funds were HUF 71.7 bln in the red at the end of August. Separate state funds ran a HUF 110.8 bln surplus, state news wire MTI reports.
In August alone, the general government ran a HUF 163.1 bln deficit. The ministry noted that the deficit for the first eight months was HUF 274 bln in the base period.
Total revenues for January-August 2017 amounted to HUF 11,616 bln, while expenditures totaled HUF 12,596 bln, compared to respective figures of HUF 10,745 bln and HUF 11,019 bln in January-August 2016.
Corporate tax income in January-August was HUF 329 bln, down HUF 41.9 bln compared to the first eight months of 2016.
Income from value-added tax totaled HUF 2,270.7 bln, up HUF 173.8 bln. Income from excise tax, at HUF 646.7 bln, was up by around HUF 7.9 bln. Income from financial transaction tax was up HUF 12.3 bln at HUF 143 bln, while income from the special bank levy was down slightly to HUF 35.6 bln, from HUF 36.4 bln earlier.
Revenue from personal income tax was up HUF 128.4 bln at HUF 1,261.4 bln. Higher wages helped lift revenue.
In August, revenues connected to employment and consumption - including income from healthcare contributions and payroll tax - were markedly up compared to last year because of higher wages and government support given to families, even as the tax burden on companies diminished.
On the expenditures side, advance payments from domestic funds for EU tenders raised spending. Advance payments reached HUF 1,324.6 bln in January-August, almost doubling compared to the base period, the ministry said.
Government subsidies for families wishing to construct homes were up 33.8% compared to the base period, while payments of family subsidies scheduled for September were brought forward to August to help families prepare for the start of the school year. The latter raised expenses by HUF 33 bln.
The ministry said that the deficit target of 2.4% of GDP for the full year, calculated according to EU accounting rules,"can be safely achieved" while preserving the stability of general government finances.
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