General govʼt deficit reaches 35.3% of full-year target


Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 352.7 billion deficit at the end of July, thus reaching 35.3% of the HUF 998.4 bln full-year target, the Ministry of Finance said in a preliminary release of data on Thursday.    

The ministry noted that the general government had a HUF 37.2 bln surplus alone in the month of July, "as a result of the governmentʼs policy founded on increasing employment and reducing taxes, as well as thanks to the performance of the economy."

At the end of July, the central government deficit came to HUF 446.7 bln, while separate state funds had a surplus of HUF 73.5 bln and social insurance funds were HUF 20.5 bln in the black.

The ministry said revenue from VAT was up HUF 410.8 bln in January-July from the corresponding period a year earlier, revenue from personal income tax rose by HUF 127.3 bln, and revenue from excise tax was HUF 57.0 bln higher. Revenue from payroll tax and social contributions climbed HUF 310.7 bln during the period.

The ministry noted that pre-financing for European Union-funded projects continued to impact the general government balance. In January-July, that financing came to HUF 850.8 bln, while transfers from Brussels reached just HUF 441.0 bln.

Domestic funding also went to projects that are part of the Modern Cities Program, to railway upgrades, to developments in Pest County, and to investment incentives for businesses, the ministry added.

The full-year deficit target of 1.8% of GDP, calculated using EU accounting rules, "remains achievable," it said.


Sharp Rise in Energy Costs Putting Strain on Competitiveness Analysis

Sharp Rise in Energy Costs Putting Strain on Competitiveness

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim... City

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim...


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.