Deficit as Proportion of GDP at 3.7% in Q1-Q3 2022
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According to preliminary data, the deficit of the general government sector in Q1-Q3 2022 was HUF 1.825 trillion, 3.7% of GDP, according to data published by the Central Statistical Office (KSH).
The balance improved by HUF 366 billion, or by 1.7 percentage points as a proportion of GDP compared to the same period of the previous year.
The general government sector’s revenues were HUF 20.048 tln and its expenditures HUF 21.872 tln in Q1-Q3.
Compared to the same period in 2021, revenues increased by HUF 3.971 tln or by 24.7%. The largest, HUF 1.281 tln (18.3%) increase in value was recorded in taxes on production, within it, VAT revenues grew by HUF 966 billion (by 25%). Revenues from taxes on income were some HUF 1.225 tln (54.7%) higher than in Q1-Q3 2021, mainly due to the income tax refund to families with children (the accrual-based accounting of the refund lowered the value of the base period).
Social contributions increased by HUF 487 billion (by 11.5%). Other revenues went up by HUF 975 billion (37.6%).
Expenditures increased by HUF 3.605 tln or by 19.7%. The growth in the case of paid compensation of employees was HUF 743 billion (17.4%), regarding social benefits other than social transfers in kind it was HUF 755 billion (17.7%). Intermediate consumption went up by HUF 503 billion (by 16%) and interest expenditures increased by HUF 325 billion (by 35.5%). Gross fixed capital formation decreased by HUF 4 billion (by 0.2%). Other general government sector expenditures went up by HUF 1.283 tln (by 35.9%).
In the 3rd quarter of 2022 compared to the same period of 2021:
In Q3 2022, the general government sector had a deficit of HUF 932 billion, representing 5.4% of GDP. Compared to Q3 2021, the balance deteriorated by HUF 261 billion or by 0.5 percentage points.
Revenues increased by HUF 1.133 tln (by 20.3% year-on-year).
Expenditures were HUF 1.394 tln (22.3% y.o.y.) higher.
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