Gen gov't deficit near HUF 540 bln at end-Feb


Hungary's cash flow-based general government, excluding local councils, reached HUF 539.7 bln at the end of February, the Finance Ministry said in a preliminary report on Monday, according to state news wire MTI.

The ministry said the deficit was the result of "measures taken so far and pandemic expenditures".

"The resources necessary for [pandemic] defense, such as the procurement of vaccines, and for restarting the economy continue to be available in the budget," the ministry added.

The central budget had a HUF 505.5 bln deficit and the social insurance funds were HUF 47.6 bln in the red, but separate state funds had a surplus of HUF 13.4 bln at the end of February. 

The deficit swelled after running a HUF 198.8 bln surplus at the end of January.

The ministry noted that payouts for European Union-supported projects came close to HUF 481 bln in January-February, while transfers from Brussels reached just HUF 128.8 bln.

Hungary's government has been pre-financing EU-supported investments for years, a practice that impacts the cash flow-based deficit, but not the accrual-based deficit calculated according to EU accounting rules.

The ministry noted that expenditures in January-February included HUF 57.4 bln for road developments, HUF 50.7 bln for competitiveness-boosting subsidies, HUF 42 bln for projects in the Modern Cities Program, HUF 38.8 bln for public transport projects and HUF 28.7 bln for the Healthy Budapest Program.

t added that spending was also impacted by the first tranche of an annual pensioners' bonus the government is reintroducing, the extension of a wage support program for businesses impacted by pandemic restrictions, and the launch of a scheme that will raise the salaries of doctors over several years.



Sharp Rise in Energy Costs Putting Strain on Competitiveness Analysis

Sharp Rise in Energy Costs Putting Strain on Competitiveness

Parl't approves 2023 budget Parliament

Parl't approves 2023 budget

Danubius Hotels Appoints Group Director of Development Appointments

Danubius Hotels Appoints Group Director of Development

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim... City

3 Downtown Districts Planning to Introduce 30 km/h Speed Lim...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
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.