FinMin forecasts July budget surplus at Ft 7.88 bln
Hungary, struggling to control the European Union's largest budget deficit, expects a surplus of Ft 7.88 billion this month and reiterated its revised target.
The January-June gap totalled Ft 1,284.9 billion or 5.6% of gross domestic product. The ministry projected Ft 1,318.3 billion deficit for H1, which would have been 5.7% of GDP. The H1 gap corresponds to 72.6% of the fully-year estimate. Prime Minister Ferenc Gyurcsány is struggling to reduce the shortfall, the EU's largest compared with the size of the economy, which is expected to surpass targets for a fifth consecutive year. He said the new package is tough but effective. Gyurcsány has pledged to raise taxes, boost energy prices and cut government jobs to trim the shortfall.
The government June 20 revised its target for the annual cash-flow budget deficit to Ft 1.77 trillion from Ft 1.55 trillion. The targeted shortfall by EU standards is 8% of GSP, even after measures to cut it by Ft 350 billion this year. The June deficit was Ft 303.9 billion, compared with a government forecast of Ft 337 billion. The shortfall was smaller than expected as revenue was above target while the central government bureaucracy spent less than budgeted, said Tamás Katona, undersecretary at the Finance Ministry. Inflation is likely to accelerate to about 3.5% by the end of the year from 2.8% in June as a result of the deficit-cutting measures, Katona said. Hungary will post a Ft 7.8 billion public sector surplus in July, Finance Ministry secretary of state.
Extra-budgetary funds booked a surplus of Ft 8.6 billion. Katona also said that the ministry considered their 4.5% GDP growth projection for 2006 achievable, but added that the inflation estimate needed to be revised due to the government's fiscal adjustment package, which was announced on June 10. The previous 2% annual average inflation forecast was raised to 3.5%, he added. (Bloomberg, Portfolio.hu)
ADVERTISEMENT
Hungary Agricultural Output Value Grows by 6.5%
Hungarian-American Business Chamber Established in Chicago
Number of Registered Jobseekers Down 3% in November
Mulled Version of Belle-Vue Kriek Makes Debut at Advent Fair
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.
