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General gov’t deficit 111.4% of full-year target in 2016

Telco

Hungaryʼs cash flow-based general government deficit, excluding local councils, reached HUF 848.3 billion in 2016, 111.4% of the full-year target, the Ministry for National Economy said in a second reading of data released today, according to Hungarian news agency MTI.

For the full year, the central budget ran a HUF 771.6 bln deficit, while the social insurance fund and separate state funds were HUF 75.2 bln and HUF 1.5 bln in the red, respectively.

In 2015, the general government deficit was HUF 1.2372 trillion, while the central budget ran a HUF 1.2139 tln deficit. 

The difference between 2015 and 2016 can be mainly attributed to higher tax revenues resulting from an expansion in employment which was "supported by favorable economic trends, the whitening of the economy and regulatory changes," the ministry said.

Revenues of budgetary institutions also increased, while chapter-based allocations from the European Union likewise contributed, the ministry added.

In December alone the central government had a HUF 907.6 bln deficit, compared to only a HUF 266.4 bln deficit in December 2015. The monthly deficit was up mainly because of an increase in expenditures in the last month of 2016 as a "result of favorable budgetary trends which made it possible to finance new programs and goals" by the government.

The ministry noted that numbers for the deficit to GDP ratio calculated according to EU accounting rules will be published at the end of March 2017 in an official report sent to the EU.

Total revenues for 2016 were HUF 18.155 tln while expenditures totaled HUF 19.003 tln, compared to respective figures of HUF 17.497 tln and HUF 18,734 bln in 2015.

Corporate tax income last year was HUF 683.1 bln, up by HUF 134.3 bln compared to 2015.

Income from value-added tax totaled HUF 3.290 tln, up by HUF 4.6 bln. Income from excise tax, at HUF 1.0118 tln, was also up by around HUF 13.4 bln.

Income from tax on financial transactions was down HUF 8.6 bln at HUF 199.1 bln, while income from the special bank levy was down to HUF 73.19 bln, from HUF 149.6 bln earlier.

Revenue from personal income taxes totaled HUF 1.717 tln in 2016, up by HUF 29 bln compared to the year before on the net effects of higher wage spending and lower tax rates.

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