Hungary’s deficit at 0.7% of GDP in first half

Telco

Image by Shutterstock.com

Hungary’s general government deficit in the first half of 2016 came to HUF 122.8 billion, which is 0.7% of GDP according to preliminary data. This is HUF 184.9 billion less, or 1.1 percentage points lower, compared to the corresponding period a year earlier, the Central Statistical Office (KSH) announced today in a first release of data.

The decrease in the deficit was mainly due to declines in expenditure on investment – financed from revenues from the EU – and in interest expenditures, as well as to growth in actual social contributions and revenues from taxes on income, according to the KSH report. 

In the first half of the year, following a decrease of HUF 377.3 bln, expenditures on investment fell to half of the figure in the same period of 2015, as a consequence of the completion of EU projects, KSH data show. The general government’s interest expenditures were also reduced, by HUF 33.2 billion (5.5%), the KSH added.

Of revenues during the first half, actual social contributions were HUF 163.8 bln (7.6%) higher, while revenues from taxes on income HUF 140.5 bln (13%) more than a year earlier, the latter mainly resulting from payments from recipients of tax credit for growth, the KSH added.

In the second quarter of the year, the deficit in the general government sector was HUF 61.4 bln, 0.7% of GDP, HUF 9.6 billion more - or 0.1 of a percentage point higher - compared to the equivalent period a year earlier. Revenues declined by HUF 142.8 bln, or 3.6%, while expenditures were HUF 133.2 bln (3.3%) lower than a year earlier, according to the KSH.

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

BFK developing regional cycling strategy City

BFK developing regional cycling strategy

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.