Stimulus lifts gen gov't deficit to HUF 3.931 tln in Nov


Image by

Hungary's cash flow-based general government deficit, excluding local councils, reached HUF 3.931 trillion at the end of November, widening on stimulus measures, the Finance Ministry said in a preliminary release on Wednesday, state news wire MTI reports.

"Government measures to protect families, reduce taxes and offer investment incentives have helped the economic recovery to a large degree and mitigated the negative effects of external factors," the ministry said.

"The Hungarian economy grew 6.1% in the third quarter, and [Hungary] remains at the forefront of the European Union in terms of its investment rate, while the number of employed has come close to 4.7 million people," it added.

The deficit widened by HUF 1.009 tln from a month earlier.

 The central budget ran a HUF 3.61 tln deficit at the end of November and the social security funds were HUF 347.2 bln in the red, but the separate state funds had a surplus of HUF 26 bln.

The ministry noted that an inflation-indexed top-up and an HUF 80,000 premium linked to economic growth were paid to all pensioners in November, adding around HUF 250 bln to fiscal expenditures.

This year's spending on pensions reached nearly HUF 3.796 tln at the end of November, while expenditures on preventive healthcare reached HUF 1.634 tln, the ministry said.

Other "essential" spending included HUF 234.5 bln on road developments, HUF 181.2 bln on public transport programs, HUF 162.7 bln for the Hungarian Villages Program and HUF 95.3 bln for subsidies to boost corporate competitiveness against the backdrop of the pandemic, it added.

"After the successful re-start of the economy, the government continues to expect declining deficit and state debt rates," the ministry said.


OTP Redeems EUR 400 mln of Green Securities Banking

OTP Redeems EUR 400 mln of Green Securities

KDNP Pulls out of EPP After Tisza Joins Elections

KDNP Pulls out of EPP After Tisza Joins

Magyar Telekom Announces Share Buyback for June 19-26 Telco

Magyar Telekom Announces Share Buyback for June 19-26

Chez Dodo Wins Prestigious Pastry Award Food

Chez Dodo Wins Prestigious Pastry Award


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.