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General government deficit reaches HUF 402.1 bln in H1

Telco

Hungaryʼs cashflow-based general government deficit, excluding local councils, reached HUF 402.1 billion in the first six months of 2016, the National Economy Ministry reported today. At this pace, the 2%-of-GDP full-year deficit target “remains realistic and achievable” the ministry said.

The deficit reached 52.8% of the HUF 761.6 bln full-year target, MTI Econews calculated. 

In June alone, the general government ran a HUF 388.9 bln deficit, up from HUF 312.2 bln a year earlier, according to MTI.

The central budget was reported as having a HUF 514.9 bln deficit in the first half of the year, while the social insurance funds and separate state funds had surpluses of HUF 47.2 bln and HUF 65.6 bln, respectively.

The National Economy Ministry noted that the H1 deficit was HUF 823.3 bln in 2015, more than double the shortfall this year. It attributed the drop to lower central budget expenditures, favourable economic trends and higher tax revenues resulting from government measures to whiten the economy (the electronic monitoring system for road haulage companies and the online connection of tills to the tax office).

June expenditures were slightly higher than in the previous months, the ministry said, mainly due to differences in interest expenditure related to the debt service and the fact that disbursements have begun for the 2014-2020 European Union funding programs.

The ministry maintained that neither this yearʼs or next yearʼs central budget should be amended in the light of the UKʼs decision to leave the EU.

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