General gov’t runs HUF 180.4 bln surplus at end of Feb
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Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 180.4 billion surplus at the end of February, the Ministry for National Economy (NGM) confirmed in a second reading of data on Tuesday, Hungarian news agency MTI reported.
The central budget ran a HUF 144.2 bln surplus and separate state funds were HUF 48.4 bln in the black, but the social security funds had a deficit of HUF 12.2 bln.
In February alone, the general government ran a HUF 57.0 bln surplus.
Higher revenues, especially from VAT and personal income tax, played a decisive role in the improved balance compared to the corresponding period a year earlier, the ministry said. These revenues were supported by favorable economic trends, a crackdown on tax evasion and the impact of labor policy measures, such as a big minimum wage rise, it added.
The ministry noted that revenue from state-owned assets was higher and the government had recouped pre-financing for European Union-funded projects. It added that domestic financing for projects supported by monies from the 2014-2020 EU funding cycle had also impacted the general government balance.
The deficit target of 2.4% of GDP for 2017, calculated according to EU accounting rules, is "realistic" and "can be safely achieved," the ministry said.
The 2017 budget act targets a full-year deficit of HUF 1.1664 trillion.
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