Ministry confirms HUF 192.8 bln deficit at end of January

Telco

Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 192.8 billion deficit at the end of January, the Ministry for National Economy confirmed in a second reading of data released Wednesday. The deficit thus reached 14.2% of the HUF 1,360.7 bln full-year target.  

Confirming preliminary data released earlier in the month, the central budget had a HUF 258.9 bln deficit, while the social insurance funds were HUF 49.8 bln in the black at the end of January. Separate state funds ran a HUF 16.3 bln surplus.

The January 2018 deficit compares to a HUF 123.4 bln surplus in January 2017, noted state news wire MTI.

Total revenues for January 2018 amounted to HUF 1,572 bln and expenditures totaled HUF 1,765 bln, compared to respective figures of HUF 1,435 bln and HUF 1,311 bln in January 2017.   

According to the ministry, among expenditures were HUF 327.9 bln in advance payments on European Union funding, which was not balanced by incoming monies.

Grants awarded under the home purchase subsidy scheme for families with children, known by its Hungarian acronym CSOK, came to HUF 17.2 bln, which compares to a full-year allocation target of HUF 236.3 bln, it added.

On the income side, revenues from VAT, personal income tax and payroll tax were higher in January than in the same month a year earlier, thanks to rising employment and wage hikes, the ministry said, noting that employers had benefited from a payroll tax cut.

Corporate tax income this January was a negative HUF 29.1 bln because of tax advance supplements from last year impacting this year. Corporate tax income was down by HUF 41.6 bln compared to the first month of 2017.   

Income from value-added tax amounted to HUF 342.6 bln, up by HUF 90.6 bln. Income from excise tax, at HUF 79.7 bln, was down by around HUF 5.1 bln. Income from the financial transaction tax was down HUF 1 bln at HUF 25.7 bln, while income from the special bank levy was a negative HUF 2.65 bln, compared to HUF 954 million income a year before.

Revenue from personal income tax was up HUF 30.9 bln at HUF 206.8 bln. Higher wages helped lift revenue.

The government stands by its 2018 deficit target of 2.4% of GDP, the ministry noted. 

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