KSH: Deficit 3.8% of GDP, highest level in 18 months
Hungary's general government deficit came to HUF 272.5 bln, which is 3.8% of GDP, in Q2, preliminary data released by the Central Statistics Office (KSH) revealed today. The GDP was HUF 171.9 bln more than the deficit in the corresponding period of the previous year, with a gap of 2.7% of GDP in Q1, while the Q2 reading is the highest since 18 months ago, in Q1 2013.
The deficit, which was calculated according to the recently adopted revised European System of Accounts of the European Union (ESA2010), was the difference between general government revenue of HUF 3,611.6 bln and expenditures of HUF 3,884.1 bln.
Revenue saw a rise of 0.5% y.o.y. as revenue from tax on income rose 8.4%, social security contributions increased 7.5% and tax on production and imports climbed 3.7%.
Expenditures grew 5.2% as payroll costs rose 13.1%. Intermediate consumption increased 7.0% and spending on investments was up 5.7%. Spending on interest was down 14.5% and social security transfers, in cash, fell 2.5%.
The government targets a general government deficit of 2.9% of GDP this year. For the first half of the year, the general government deficit reached HUF 467.4 bln or 3.2% of GDP. Revenue rose 3.6% from the same period a year earlier and expenditures climbed 4.5%.
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