Hungarian government official: Talks on funding programs tie up EU transfers

Deals

Talks on some of Hungary's programs for allocating European Union funding have resulted in a HUF 170 billion fall in fiscal revenue, daily Magyar Nemzet said on Monday.

The negotiations on the programs resulted in reduced transfers or a complete halt in transfers, Magyar Nemzet said, citing deputy state secretary Peter Banai. Banai also blamed the revenue shortfall on the European Commission's liquidity problems.

He noted among the other impacts on the general government deficit some HUF 68 billion in repayments of local council debt taken over by the central government as well as HUF 130 billion in payroll costs due to the early transfer of wages before the May 1 holiday. He said the fiscal deficit was "front-loaded" and would only remain high temporarily.

Hungary's cashflow-based general government deficit, excluding local councils, reached 96.6% of the full-year target in April.

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