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Deficit growth slows, still 85.8% of 2014 target

Telco

Hungary's cashflow-based general government deficit, excluding local councils, had a HUF 14.2 bln surplus in September, narrowing the gap to HUF 844.6 bln or 85.8% of the full-year target, a first reading of data published by the National Economy Ministry revealed yesterday.

The ministry's statement shows the central budget deficit reached slightly more than HUF 1 trillion by the end of September, while the social security funds and separate state funds experienced surpluses of HUF 157.9 bln and HUF 34.3 bln, respectively.

According to the ministry, the favorable effect on the budget balance in September is due to more revenue generated by economic growth, the growing numbers of employment measures and the mandatory connection of electronic tills to the Tax and Customs Authority (NAV).

"These positive tendencies compared to earlier years will prevail to a greater degree in the second half of the year," the ministry argued, noting that the deficit – as usual – was front-loaded, with expenditures exceeding revenue in H1.

"The deficit will grow just a little in the second half of the year, and in some months – for example in September – it will fall, too", the ministry added.

The ministry confirmed the deficit target for the full year remained 2.9% of GDP, calculated in line with EU rules.

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