Pandemic spending lifts state debt ratio to 81.7% of GDP
Government expenditures related to the coronavirus pandemic lifted Hungary's state debt relative to GDP to 81.7% at the end of the first quarter, preliminary data released by the National Bank of Hungary (MNB) on Monday show, according to a report by state news wire MTI.
The ratio rose from 80.4% at the end of Q4 and 65.8% twelve months earlier.
In absolute terms, state debt reached HUF 39.110 trillion at the end of March.
Hungary's constitution stipulates that year-end state debt relative to GDP must decline until the ratio reaches 50%, but the government anticipated the level would rise last year because of spending on pandemic defense and economic stimulus. Amendments to this year's budget recently submitted to lawmakers by the government shows the state debt ratio falling to 79.9% at end-2021.
MNB data show the general government's net financing requirement - a good approximation for the general government deficit - reached HUF 801 bln in Q1, the equivalent of 7.2% of quarterly GDP.
At the same time, households' net financing capacity reached HUF 937 bln, the equivalent of 8.4% of quarterly GDP.
Erste Bank Hungary Q1 Earnings Close to HUF 29 bln
Hungary Welcomes Extension of China's Visa Exemption Policy
Living's Kassák Terrace and Park West 3 Classified as Brownf...
Aldi Opening Biggest Store in Budapest
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.
