COVID spending lifts state debt ratio to 81% of GDP

Debt

Photo by Adriana Iacob/Shutterstock.com

Government expenditures related to the coronavirus pandemic lifted Hungary's state debt relative to GDP to 81% at the end of the first quarter, a second reading of data released by the National Bank of Hungary (MNB) on Wednesday shows.

The ratio rose from 80.4% at the end of 2020 and was up from 65.8% 12 months earlier.

In absolute terms, state debt reached HUF 39.11 tln at the end of Q1.

Hungary's constitution stipulates that year-end state debt relative to GDP must decline until the ratio reaches 50%.

Lawmakers approved amendments to the 2021 budget in May that target a decline in the year-end state debt level to 79.9%.

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