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The deficit was HUF 838 bln higher than in the same period of the previous year. As a proportion of GDP, the shortfall widened by 3.1 percentage points year-on-year.
The deficit was driven by the central government, which recorded a shortfall of HUF 2.492 tln in the first quarter. Local governments posted a surplus of HUF 373 bln, while social security funds ended the period with a surplus of HUF 28 bln.
General government revenues totaled HUF 9.327 tln in the first quarter, while expenditures amounted to HUF 11.417 tln.
Compared with the first quarter of 2025, revenues increased by HUF 960 bln, or 11.5%. Revenues from taxes on production rose by HUF 136 bln, or 3.9%, while VAT revenues were up HUF 133 bln, or 7.1%.
Revenues from taxes on income increased by HUF 171 bln, or 11.6%, from a year earlier. Social contributions rose by HUF 321 bln, or 14.6%, while other revenues increased by HUF 331 bln, or 27.1%.
Expenditures grew more rapidly, rising by HUF 1.798 tln, or 18.7%, compared with the same period of 2025.
Compensation of employees increased by HUF 841 bln, or 38.5%, while intermediate consumption rose by HUF 151 bln, or 10.4%. Social benefits other than social transfers in kind were up HUF 404 bln, or 15.1%.
Interest expenditures increased by HUF 5.9 bln, or 0.7%. Gross fixed capital formation fell by HUF 134 bln, or 26.2%, while other general government sector expenditures rose by HUF 530 bln, or 27.8%.
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