Government deficit reaches HUF 13.2 bln in May, 1.7% of full-year target
Hungaryʼs cashflow-based government deficit, excluding local councils, reached HUF 13.2 billion at the end of May, the National Economy Ministry confirmed in a second reading of data today, Hungarian news agency MTI reported.
The deficit reached 1.7% of the HUF 761.6 bln full-year target.
The central budget ran a HUF 98.9 bln deficit during the period, while the social insurance funds and separate state funds had surpluses of HUF 48.9 bln and HUF 36.8 bln, respectively.
In May alone, the general government ran a HUF 131.7 bln surplus.
The ministry noted that the January-May deficit was almost HUF 500 bln lower than the gap in the same period a year earlier due to higher co-payments on European Union-supported projects at the end of the 2007-2013 funding cycle, and lower co-payments at the start of the new funding cycle, as well as higher revenue from corporate tax, VAT, personal income tax and social contributions.
The ministry attributed higher budget revenue to the “favourable economic environment” and “dynamically expanding employment” as well as a crackdown on tax evasion that has improved taxpayer morale. It also acknowledged the impact of the growth tax credit on higher corporate tax revenue.
The tax credit allows companies with fast-growing earnings to defer corporate tax payments on profit increases over a period of two years.
The 2%-of-GDP full-year deficit target, calculated according to EU accounting rules, “remains realistic and achievable”, the ministry said.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.