Gov't deficit reaches HUF 1.704 tln

Debt

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Hungary's cash flow-based government deficit, excluding local councils, reached HUF 1.704 trillion at the end of June, widening on stimulus measures, the Ministry of Finance confirmed in a detailed reading of data on its website.

"Recent measures, such as wage support, tax breaks, and pension supplements, have left significant resources in the economy," the ministry said. "The position of the budget this year has been impacted significantly, too, by tax exemptions and wage subsidies that went to players in hard-hit sectors until the end of May," it added. 

The ministry noted that, from June, pensioners got a retroactive inflation-linked supplement that adds up to around HUF 26 billion. "The budget continues to ensure the resources necessary for the restart of the economy: coverage required for workplace creation, for investment incentives, and for tax reductions is available in full," the ministry said. 

The government aims to achieve economic growth this year of "at least 5.5%" through "supportive fiscal policy," it added.

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