Surplus equal to 2.0% of GDP in Q1

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According to a first release of preliminary data, the general government sector had a surplus of HUF 178.3 billion in the first quarter of 2017, equal to 2.0% of GDP. The surplus was HUF 44.3 bln, or 0.4 of a percentage point higher, as a proportion of GDP compared to Q1 2016. The change in the balance was due to a larger rise in revenues than in expenditures.

In the first quarter of 2017 compared to Q1 2016, revenues of the general government sector were HUF 3,938.6 billion, while expenditures amounted to HUF 3,760.3 bln.

Revenues grew by HUF 225.7 bln, or 6.1%. The largest increase, of HUF 73.2 bln (up 12.4%), was recorded in revenues from taxes on income. Taxes on production were up by HUF 71.8 bln (4.9%), within which HUF 58.5 bln (7.9%) was an increase in VAT revenues.

Other revenues, consisting mainly of EU transfers, contributed to the rise in general government sector revenues by HUF 42.1 bln (7.7%). Social contributions were HUF 38.6 bln (3.4%) higher.

Expenditures increased by HUF 181.4 bln, or 5.1%. The growth was HUF 79.7 bln (9.0%) in paid compensation of employees, HUF 76.4 bln (54.9%) in gross fixed capital formation, HUF 28.9 bln (2.6%) in social benefits other than social transfers in kind, and HUF 51.2 bln (8.9%) in other expenditures, including mainly transfers.

On the other hand, intermediate consumption was HUF 35.2 bln (–6.1%) less, and interest expenditures were HUF 19.5 bln (–6.8%) lower than a year earlier.

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