Hungaryʼs general government deficit HUF 536.7 bln in Q1

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Hungaryʼs cashflow-based general government balance, excluding local councils, came to HUF 536.7 bln in January-March, the National Economy Ministry said in a first reading of data today. In January-March 2014, the deficit was HUF 701.2 bln.

The January-March deficit was 61% of the full-year target of HUF 877.4 bln, Econews calculated.

The ministry noted that the deficit is front-loaded, as usual, with expenditures exceeding revenue in the first half of the year.

The central budget had a deficit of HUF 558.3 bln in January-March, while the social security funds had a surplus of HUF 10.7 bln and the separate state funds had a surplus of HUF 10.9 bln. In March alone, the deficit reached HUF 226 bln.

The decrease of the deficit in Q1 2015 as compared to the same period last year is due to higher tax revenues resulting from the steady growth of the economy on the one hand, and the more positive interest balance on the other hand, the ministry said. The increase in revenues was due to higher tax payments resulting from higher wages and to measures aimed to improve tax payment morale, they added.

The ministry also noted that family and social policy allowances disbursed in March this year considerably exceeded similar expenditures paid in the previous year. This is because, considering the Easter holidays, April family and disability allowances - worth almost HUF 35 bln combined - were transferred already at the end of March, increasing expenditures for March while reducing them for the month of April, the ministry said.

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