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Gen’ gov’t deficit reaches 78% of full-year target in June, ministry confirms

Telco

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Hungaryʼs cash flow-based general government deficit reached HUF 911.2 bln at the end of June, 78.1% the full-year target, the National Economy Ministry confirmed in a second reading of data today, Hungarian news agency MTI reported. The deficit does not include the balance of local councils.

The central budget ran a HUF 902.4 bln deficit and the social insurance funds were HUF 110.5 bln in the red at the end of June. The separate state funds had a HUF 101.7 bln surplus.

In June alone, the general government ran a HUF 697.9 bln deficit. The deficit at the end of June was HUF 402.1 bln higher than 12 months earlier.

The ministry said the deficit was lifted by advance payouts of European Union funding from national coffers, home construction subsides and interest payments due in June on a number of government bond series. The advance payouts alone came to HUF 1.046 trillion in January-June, up from HUF 467.4 bln in the base period, the ministry noted.

On the revenue side, the balance was lifted by personal income and payroll tax as well as the small business tax.

The full-year deficit target of 2.4% of GDP, calculated according to EU accounting rules, can be "safely achieved", the ministry said.

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