General gov’t runs HUF 123.4 bln surplus in January

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Hungaryʼs cash flow-based general government balance, excluding local councils, showed a HUF 123.4 billion surplus in January, a first reading of data released by the Ministry for National Economy today shows, according to Hungarian news agency MTI.

The central budget ran a HUF 65.9 billion surplus, while the social security funds and separate state funds were HUF 25.5 bln and HUF 32.0 bln in the black, respectively. The 2017 budget act targets a full-year deficit of HUF 1,166.4 bln.

The ministry noted that the general government also ran a surplus, of HUF 92.4 bln, in the same month a year earlier. It attributed the improved balance in January 2017 mainly to higher revenue from corporate tax, VAT, excise tax and payroll tax.

"This continues to be due mainly to real economic trends, as well as the results of government measures targeting tax compliance and expanded employment," the ministry said.

"This fiscal year will be characterized mainly by a reduction in the VAT rate of some staples and the reduced burden for businesses, an unprecedented degree of state support for home purchases, and a significant increase in the minimum wage for skilled and unskilled workers," it added.

The deficit of 2.4% of GDP targeted for 2017 is "realistic and achievable," the ministry asserted. 

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