General government deficit 0.5% of GDP in Q1-Q3 2017

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The deficit of Hungaryʼs general government sector in the first three quarters of 2017 totaled HUF 139.6 billion, equivalent to 0.5% of GDP, preliminary data released by the Central Statistical Office (KSH) today shows. The balance deteriorated by HUF 301.0 bln, or by 1.1 percentage points, as a proportion of GDP compared to the same period of 2016.

In the first three quarters of 2017, KSH figures show that revenues of the general government sector amounted to HUF 12,318.3 bln, while expenditures totaled HUF 12,457.9 bln.

Revenues grew by HUF 814.2 bln, or by 7.1%, compared to the corresponding period of 2016.

Social contributions were up by HUF 77.9 bln (by 2.2%), while revenues from taxes on income were HUF 150.5 bln (8.2%) higher than a year earlier. Taxes on production increased by HUF 293.8 bln (by 6.3%), within which VAT revenues rose by HUF 207.2 bln (by 8.7%). Other revenues were up by HUF 289.0 bln, or by 19.4%, mainly as a result of a significant growth in EU transfers.

Expenditures increased by HUF 1,115.2 bln, or by 9.8%, compared to the first three quarters of 2016.

The paid compensation of employees grew by HUF 215.7 bln (by 7.7%), and social benefits other than social transfers in kind by HUF 60.9 bln (by 1.8%). Other expenditures were HUF 410.2 bln (21.0%) higher – mainly due to an increase in investment grants. Gross fixed capital formation was up by HUF 394.8 bln (by 61.6%) and intermediate consumption by HUF 69.0 bln (by 4.0%).

On the other hand, interest expenditures of the general government sector were lower by HUF 35.4 bln (down by –4.2%).

In the third quarter of 2017, compared to the corresponding period of 2016, the deficit of the general government sector was HUF 367.6 bln, equivalent to 3.9% of GDP. The figure was HUF 442.4 bln or 4.7 percentage points less favorable than one year earlier.

Revenues in the third quarter grew by HUF 150.3 bln, or by 3.8%. Expenditures were HUF 592.8 bln (15.4%) higher than a year earlier.

Figures for the balance of the general government sector in the fourth quarter of 2017 will be published by the KSH on April 4, 2018.

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