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

Debt

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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.
 

 

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