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Deficit above 140% of full-year target

Hungaryʼs cash flow-based general government, excluding local councils, ran a HUF 1.639 trillion deficit at the end of November, lifted by advance payments on European Union funding, the Ministry for National Economy said in a preliminary release of data on Thursday, as summarized by state news wire MTI.

The deficit thus reached 140.5% of the HUF 1.166 tln full-year target at the end of November, MTI-Econews calculated.

The central budget ran a HUF 1.667 tln deficit at the end of November and the social insurance funds were HUF 93.3 billion in the red, but separate state funds had a HUF 121.3 bln surplus.

The general government ran a HUF 220.8 bln deficit in the month of November alone.

The ministry noted that advance payments on EU funding came close to HUF 1.925 tln, while EU transfers reached just HUF 381.7 bln. It added that some 2.75 million pensioners had received an inflation-linked top-up and growth premium in November.

Revenues from VAT, personal income tax, payroll tax and social contributions were up during the period, lifted by a six-year agreement on wage rises and increased employment, the ministry said. The full-year deficit target of 2.4% of GDP, calculated using EU accounting rules, is "achievable with certainty," it added.