2014 budget amended to accommodate assets purchases, capital injections

Telco

Parliament approved on Tuesday amendments to the 2014 Budget Act that raised the cashflow deficit by HUF 167 bln to HUF 1.156 trillion, mainly to accommodate earlier and ongoing government assets purchases or to provide fresh capital to state-owned companies, MTI reported.

The amendments, part of which were tabled by the government in June, will not affect the EU-conform deficit, targeted at 2.9% of GDP in 2014, although some of them may raise state debt, the Fiscal Council said earlier. Budget expenditure will rise in line with the cashflow deficit while net revenue will remain unchanged.

Part of the higher expenditure, namely items worth HUF 47.7 bln that would otherwise raise the ESA deficit, were counterbalanced by a similar-size reduction of the budget's National Protection Fund, to HUF 52.3 bln. The Fiscal Council earlier warned against lowering the fund, which provides a buffer against deficit overshoot risks.

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.

Support the BBJ

Tech