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Govʼt says deficit target of below 3% still on track

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The government is focusing on speeding up economic growth and improving the situation of companies and families. Financial resources are sufficient for this while maintaining the stability of the budget, according to a statement from the Ministry for National Economy on Thursday.

Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 979.9 billion deficit at the end of August, preliminary data released by the ministry on Thursday show. The central budget had a HUF 1,019 bln deficit, while the social insurance funds were HUF 71.7 bln in the red. Separate state funds had a surplus of HUF 110.8 bln.

The deficit has thus reached 84.01% of the HUF 1,166.4 bln full-year target, state news wire MTI calculated.

In August alone, the general government, excluding local councils, ran a HUF 163.1 bln deficit.

According to the ministry analysis, the beneficial effects of wage raises and tax reductions are already visible. A total of 4,434,000 persons are employed, which is a record high number, while unemployment has decreased to 4.2%.

As for expenditures, payments from domestic funds for EU tenders raised spending to HUF 1,324.6 bln in January-August, almost double compared to the base period, the ministry said.

Government subsidies for families wishing to construct homes were up 33.8% compared to the base period, with family subsidy payments scheduled for September brought forward to August to help families prepare for the start of the school year. The later raised expenses by HUF 33 bln, the ministry noted.

The ministry asserted that the deficit target of 2.4% according to EU rules can be safely achieved.

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