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Deficit confirmed at 3.9% of full-year target by end of April

Hungary’s general government, excluding local councils, ran a HUF 39 billion deficit at the end of April, reaching just 3.9% of the HUF 998.4 bln full-year target, the Ministry of Finance confirmed Tuesday in a detailed reading of data published on government website

The central budget was HUF 80.7 bln in the red at the end of April, while the separate state funds and the social insurance funds had surpluses of HUF 33.1 bln and HUF 8.6 bln, respectively.

The ministry said that revenue from VAT was up HUF 349.3 bln in January-April from the corresponding period a year earlier. Revenue from personal income tax rose HUF 55.5 bln, revenue from excise tax was up HUF 36.5 bln, and payroll tax revenue climbed HUF 160.9 bln during the period, it added.

On the expenditure side, pre-financing for European Union-supported projects came to HUF 489.3 bln, while transfers from Brussels reached just HUF 305.9 bln.

The ministry said the full-year deficit target of 1.8% of GDP, calculated using the EU’s accrual-based accounting methodology, "remains achievable," while Hungary’s level of state debt, relative to GDP, can be reduced to under 70%.