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General govʼt runs HUF 816.8 bln deficit at end of July

Telco

Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 816.82 billion deficit at the end of July, preliminary data released by the Ministry for National Economy on Monday show, according to state news agency MTI.

The deficit thus reached 70.03% of the HUF 1,166.4 bln full-year target, MTI-Econews calculated.

The central budget had a HUF 843.7 bln deficit and the social insurance funds were HUF 81.8 bln in the red at the end of July. The separate state funds ran a HUF 108.7 bln surplus.

In July alone, the general government, excluding local councils, ran a HUF 94.4 bln surplus. Last year in July there was a monthly deficit of HUF 62.7 bln.

The seven-month deficit was up from a HUF 464.8 bln deficit in the base period.

According to the ministry, the July surplus was achieved primarily thanks to an increase in tax revenues. There has been substantial growth in VAT revenues, PIT revenues and income from healthcare contributions and payroll tax. Revenue from sales of state-owned farmland also increased income.

The ministry noted the effects of advance payments from domestic funds for EU tenders, which raised expenditures. Advance payments reached HUF 1,090 bln in January-July, compared to HUF 601.7 bln for the corresponding period of last year.

The state of general government finances is "stable" and the deficit target of 2.4% of GDP for the full year, calculated according to EU accounting rules, "can be safely achieved," the ministry added.

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