The H1 surplus was up HUF 183.9 billion, or one percentage point of GDP, compared to the same period in 2016. Government sector revenue rose 9.9% or HUF 748.8 bln to HUF 8.322 trillion in H1 2017 compared to H1 2016. Social security contributions were up 2.4% or HUF 54.8 billion. PIT revenue was up HUF 96.2 bln or 7.9%, mainly on contributions of those who have taken up the growth tax credit, national news agency MTI reports.
Revenues from taxes on production were up by HUF 191.1 bln (6.2%); of these VAT revenue expansion was HUF 127.4 bln (8.1%). “Other revenues”, which include EU transfers, were up most, rising by HUF 404.2 bln, or 41.7%.
Expenditures were up HUF 564.8 bln or by 7.5% in January-June, compared to the same period in 2016 and reached HUF 8.051 tln. Wage expenditure was up by HUF 148 bln (8.1%) annually in H1, social benefit expenses rose HUF 42 bln (1.9%), while other expenditures were up HUF 178.7 bln (13.9%).
Investments expenditures saw a jump of HUF 277.5 billion translating into a 79.9% expansion. Current production expenditure however was down by HUF 51.8 bln (4.3%) and interest expenditure also fell by HUF 29.6 bln (5.2%).
In Q2, the surplus of the government sector was HUF 18.2 bln or 0.2% of GDP, up by HUF 38.9 bln or 0.4 pp of GDP compared to Q2 2016. Revenues rose by HUF 516.3 bln or 13.3% as expenditures were up 12.2%, or by HUF 477.4 bln, for Q2 alone.
Concerning the second preliminary reading of national accounts, KSH said that in 2016 the government sector had a deficit of HUF 656.5 bln, reaching 1.9% of GDP. According to data from the National Bank of Hungary, government debt was at HUF 26.164 tln, or 73.9% of GDP, at the end of 2016.
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