KSH: Government deficit is 1.1% of GDP in H1

The lower-than-base-period deficit stemmed from revenues increasing at a higher rate than expenditures, while the deficit of the general government sector was HUF 23.1 bln in the second quarter of this year, 0.3% of GDP, KSH added.

Data by KSH suggest that revenues of the general government sector were HUF 7,708.9 bln, while its expenditures HUF 7,893.0 bln in the first half.

First Half

In year-on-year terms revenues were up by 8.5%. Growth was recorded in actual social contributions (5.3%), taxes on production and imports (4.0%) – within which VAT payments went up by 7.5% – and revenues from taxes on income (3.5%). Other revenues – mainly due to the increase of transfers from EU funds – rose by 29.0%, KSH said.

Expenditures grew by a y.o.y. 3.6%, within which the highest increase (26.8%) was measured for gross fixed capital formation due to investments realized from EU funds, KSH reported. Compensation of employees was up by 8.5%, while interests decreased by 7.2% and intermediate consumption by 3.7%, while social benefits other than social transfers in kind remained practically unchanged (0.1%), KSH added.

Second Quarter

The deficit of the general government sector was HUF 23.1 billion, 0.3% of GDP, which was HUF 280.3 bln, or 3.5 percentage point less in year-on-year terms.

Revenues increased by a y.o.y. 9.2%, with growth being registered in actual social contributions (4.4%), taxes on production and imports (4.1%) – within which VAT payments rose by 8.2% – and taxes on income (2.9%).

Expenditures were up by 1.4% in year-on-year terms, while gross fixed capital formation rose by 34.5% and compensation of employees by 8.1%. Interests fell by 8.8%, intermediate consumption by 3.2% and social benefits other than social transfers in kind by 1.2%, KSH data reveals.